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Vera_Pavlovna [14]
3 years ago
5

Kevin has a 2000 bond which a 5% coupon. Kevin purchase this bond for 2070$. What is this yield of this new bond?

Mathematics
1 answer:
just olya [345]3 years ago
8 0

Answer:

4.8%

Step-by-step explanation:

Bond par value = $2000

Coupon rate = 5% = \frac{5}{100} = 0.05

Market price of bond = $2070

Current yield of bond = \frac{Annual Dollar Interest Paid}{Market Price} *100%

= \frac{Coupon\hspace{3}rate*Bond\hspace{3}par\hspace{3}value}{Market\hspace{3}Price} *100%

= \frac{0.05*2000}{2070} *100%

= \frac{100}{2070} *100%

= 0.048*100%

= 4.8%

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Answer:

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Step-by-step explanation:

plug in -4 in Y

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plug in -4 in X

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y = -17

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Answer:

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Step-by-step explanation:

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<h3>a.</h3>

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<h3>b.</h3>

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