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(4 points) (Exercise 6.10) Determine the following for a $1000 par value 15-year bond with the yield rate 7% convertible semiannually, and coupons at 12
(4 points) (Exercise 6.10) Determine the following for a $1000 par value 15-year bond with the yield rate 7% convertible semiannually, and coupons at 12 % convertible semiannually, which will be redeemed at $1250: a) Nominal yield, based on the par value. ANSWER= %. b) Nominal yield, based on the redemption value. ANSWER= %. c) Current yield. ANSWER= %. d) Yield to maturity. ANSWER= %. (4 points) (Exercise 6.10) Determine the following for a $1000 par value 15-year bond with the yield rate 7% convertible semiannually, and coupons at 12 % convertible semiannually, which will be redeemed at $1250: a) Nominal yield, based on the par value. ANSWER= %. b) Nominal yield, based on the redemption value. ANSWER= %. c) Current yield. ANSWER= %. d) Yield to maturity. ANSWER= %
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