K(-1)= I attached the graph. Please help, thank you in advance.
1 answer:
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Answer:
yield of this new bond is 4.42%
Step-by-step explanation:
given data
bond = $5000
coupon rate = 4.6%
purchased bond = $5195
to find out
yield of this new bond
solution
We get here first amount paid to the bond holder
amount paid = 4.6% × $5000
amount paid = $230
and
so Tim earned $230 on a bond that cost her $5195
so yield of this new bond =
yield of this new bond = 4.42 %