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1) an investor purchases a 9-year, 7% annual coupon payment bond at par. after the bond is purchased and before the first coupon is received,
1) an investor purchases a 9-year, 7% annual coupon payment bond at par. after the bond is purchased and before the first coupon is received, interest rates increase to 8%. the investor sells the bond after 5 years. assume that the interest rate remains unchanged at 8% over the 5 year holding period. a) per 100 of par value, the future value of the reinvested coupon payments at the end of the holding period is closest to; ?
b) the capital gain/loss per 100 of par value resulting from the sale of the bond at the end of the 5 year holding period is closest to:?
c) assuming that all coupons are reinvested over the holding period, the investor's 5 year horizon yield is closest to: ?
Case Study-Excal OMS Piyasa Yapcilik Tell me what you want to gokcen ozyurt Share Conditonal Formattingert File Home Insert Page Layout Formulas Data Review View Calibr 11 AA Packe BIU Clipboard Fo Alignment Fomut as table Call Styles Number Delete D. Format- Manial Classification Call tiling Cut Protection A4 b) the capital gain/loss per 100 of per value resulting from the sale of the bond at the end of the 5 year holding 1) an investor purchases a 9-year, 7% annual coupon payment bond at par. after the bond is purchased and before the first coupon is received, interest rates increase to 8%. the investor sells the bond after 5 years, assume that the interest rate 1 remains unchanged at 8% over the 5 year holding period 2 C D 1a) per 100 of par value, the future value of the reinvested coupon payments at the end of the holding period is closest to:? 4b) the capital gain/loss per 100 of par valoe resulting from the sale of the bond at the end of the 3 year holding period is closest to:? 5c) assuming that all coupons are reinvested over the holding period, the investo Symar horizon yield is closest to:? " 6 7 8 9 A 10 Coupon per period-Coupon rate *Face value 11 Coupon per period 7% $100 12 Coupon per period-$7 13 Reinvested Coupon amount in year S-Coupon"(((1+r)-1) 14 41.07 15 16 ) 17 18 19 20 21 22 23 24 25 26 1.Question 2.Question 3.Question Ready DELL ENG 19:09 01.01.2022
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