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seropon [69]
3 years ago
7

A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. What is the yield to maturity

of the bond? (Round your answer to 1 decimal place.) b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 10%, (ii) 12%, (iii) 14%? (Round your answers to 2 decimal places.)
Business
1 answer:
shutvik [7]3 years ago
8 0

Answer:

Explanation:

Face value = 1000

market price = 1000

annual yield = 106

yield to maturity = (106/1000) x 100

= 10.6 % .

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Ne4ueva [31]

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kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

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Viktor [21]

Answer and Explanation:

The computation is shown below;

a.

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b.  

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seraphim [82]

Answer:false

Explanation:

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Dahasolnce [82]

Answer:

D

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