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1. You bought a 9-year, 6.98% semi-annual coupon bond today and the current market rate of return is 4.1%. The bond is callable in 3
- 1. You bought a 9-year, 6.98% semi-annual coupon bond today and the current market rate of return is 4.1%. The bond is callable in 3 years with a $90 call premium. What price did you pay for your bond?
- 2. A 5.26% annual coupon, 10-year bond has a yield to maturity of 7.93%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?
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Bond Pricing Calculations 1 Purchased Bond We can find the price you paid for the bond using the fol...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
