Question
1a. A 20-year corporate bond, par value $1,000, is selling for $1,080. Its annual coupon rate is 4.2%, but interest is paid semi-annually. What is
1a. A 20-year corporate bond, par value $1,000, is selling for $1,080. Its annual coupon rate is 4.2%, but interest is paid semi-annually. What is the bonds current yield? (Round answer to 3 decimal places. e.g., 34.456)
1b. Mary has a savings account that pays interest at 2% (stated rate), compounded daily. What is the Effective Annual Yield that Mary is earning on her account?
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
