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1. Russia issued a 10-year US dollar bond at $98 with a 7% coupon that's paid semi-annually. Six month after issuance, the bond price reached

1. Russia issued a 10-year US dollar bond at $98 with a 7% coupon that's paid semi-annually. Six month after issuance, the bond price reached $103. The investor's:

Group of answer choices

a. Annual Yield at purchase = 7%

b. Annual Yield after six months 7.14%

c. Annual Yield after six months 6.80%

d. Annual Yield at purchase 7.14%

e. ONLY C & D

f. None of the above

2. Russia issued a 10-year US dollar bond at $98 with a 7% coupon that's paid semi-annually. Six months after issuance, the bond price reached $103. The investors:

Group of answer choices

a. Return after six months = 7%

b. Return is 5.1% in capital gains and 7.14% in coupon payment

c. Return 5.1% in capital gains and 3.57% in coupon payment

d. Total return = $8.50 or 8.67% ROI

e. All of the above

f. ONLY C & D

g. None of the above

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