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Katen [24]
2 years ago
14

3. A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yie

ld curve is flat and doesn’t shift, calculate the holding period return you would achieve from buying the bond, holding it for one year only.
Business
1 answer:
aliina [53]2 years ago
3 0

Holding period return is 8.000%

Price at the time of purchase=

1000*9.3% 8(1/1.08^10)+1000/1.08^10=1087.231058

Price at the time of sale=

1000*9.3%/8%*(1-1/1.08^9)+1000/1.08^9=1081.209543

Holding period return=

(1081.209543+1000*9.3%)/1087.231058-1=8.0000%

Coupon bonds, also known as bearer bonds or bond coupons, are debt securities with coupons attached that represent semi-annual interest payments. For coupon bonds, there is no record of the purchaser and issuer. The purchaser's name is not even printed on the certificate.

A coupon bond is a debt instrument with a removable piece of paper that can be peeled off the bond itself and taken to a bank or broker to pay interest. These removable pieces of paper are called coupons and represent interest payments to creditors.

Learn more about   coupon bonds here

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The issues are as follows:

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3) hearing and vision tests.

4) legal help.

The issue that cannot be addressed by the faculty members at the high school is the legal help.

Fourth option is the correct answer.

<h3>What is meant by a high school?</h3>

A high school is the place where the students are studying in the grades from 9th to 12th.

The faculty members of the high school are addressing the issues relating to financial assistance, testing of hearing and eye vision and the nutritional requirements.

Therefore, the legal help being the issue which could not be addressed by faculty members in the high school.

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Butoxors [25]

The Public Company Accounting Oversight Board (PCAOB) issues auditing standards, carries out inspections of public accounting firms auditing public clients, and imposes sanctions.

<h3>What are sanctions?</h3>
  • Economic sanctions are financial and commercial penalties imposed by one or more nations against a particular self-governing state, group, or person.
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<h3> What is The Public Company Accounting Oversight Board (PCAOB)?</h3>
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  • In order to protect investors, the PCAOB also controls the audits of broker-dealers, including compliance reports submitted in accordance with federal securities laws.
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Therefore, the Public Company Accounting Oversight Board (PCAOB) issues auditing standards, carries out inspections of public accounting firms auditing public clients, and imposes sanctions.

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OlgaM077 [116]

Answer:

True.

Explanation:

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Answer:

The answer is True

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