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2 years ago

Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond,

Business

1 answer:

Lynna [10]2 years ago

7 0

Answer:

Check the explanation

Explanation:

Bond Cur.Yld. Vol. Close Net Chg.

Doh! 9 ½ 18 9.0 5 105 1/2 - 1/4

Doh! 8 ½ 21 9.4 10 90 1/4 -1/2

1. As given in question:

Closing Price of the first bond: =105.5*10

=1055

Closing Price of the second bond: =90.25*10

=902.5

2. Yesterday's price for first bond: =(105.5+0.25)*10

=1057.5

Yesterday's price for second bond: =(90.25+0.5)*10

=907.5

3. kindly check the attached image below to see the solution to question 3

4. Capital Gain Yield for first bond =(P1-P0)/P0

=(1055-1057.5)/1057.5

=-0.236%

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2 years ago

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3 years ago

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