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$100 PAR value, Coupon Rate 5% for both bonds Calculate solutions for problems 3 and 4 (Bonds C and D) assuming annual coupons and again
$100 PAR value, Coupon Rate 5% for both bonds
Calculate solutions for problems 3 and 4 (Bonds C and D) assuming annual coupons and again assuming semiannual coupons. Assume pricing on coupon dates. 3. Bond C: 5s of 2034; maturity 15 years Note: Data given as annual coupon (5%)/maturity date (2032)/maturity (15 years) a. Find the selling price if the yield is 7% b. Find the selling price if the yield is 5% c. Find the selling price if the yield is 3% 4. Bond D: 5s of 2049; maturity 30 years a. Find the selling price if the yield is 7% b. Find the selling price if the yield is 5% c. Find the selling price if the yield is 3% Problem 3: Bond C Annual Compounding Yield Equation with values inserted & Price 7% Difference in Prices Ps%-P7% P3% - Ps% 5% 3% Semiannual Compounding Yield Equation with values inserted & Price 7% Difference in Prices Ps%-P7% P3%-Ps% 5% 3% + Problem 4: Bond D Annual Compounding Yield Equation with values inserted & Price 7% Difference in Prices P5%-P7% P3% - Ps% 5% 3% Semiannual Compounding Yield Equation with values inserted & Price 7% Difference in Prices Ps% -P7% P3% - Ps% 5% 3%Step by Step Solution
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