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(15 marks) A bond that pays semi-annual coupons at j2=4% has coupon payments of $500. The bond is redeemable at 105 on Sept 18, 2030.
(15 marks) A bond that pays semi-annual coupons at j2=4% has coupon payments of $500. The bond is redeemable at 105 on Sept 18, 2030. c) (4 marks) Sam sells the bond to another investor on March 18, 2020 (just after the coupon is paid that day) for a quoted price of q = 102.7. Using the method of averages, what yield rate, ju did Sam earn over the time he owned the bond? (15 marks) A bond that pays semi-annual coupons at j2=4% has coupon payments of $500. The bond is redeemable at 105 on Sept 18, 2030. c) (4 marks) Sam sells the bond to another investor on March 18, 2020 (just after the coupon is paid that day) for a quoted price of q = 102.7. Using the method of averages, what yield rate, ju did Sam earn over the time he owned the bond
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