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5 points Save Answer QUESTION 19 An investor buys a 10-year callable bond with semiannual coupons of 8%. The face amount of the bond is
5 points Save Answer QUESTION 19 An investor buys a 10-year callable bond with semiannual coupons of 8%. The face amount of the bond is $100 and the bond is redeemed at par. The bond is callable after 4 years at a call price of $105. Assume the bond yields a nominal rate of 5% convertible semiannually. Determine the bond price (at time 0). A. less than $100 B. between $100 and $105 C. between $105 and $110 D. bigger than $110 QUESTION 20 5 points Save Answer A corporate bond pays semiannual coupons at a coupon rate of 4%. The bond is priced to yield 7% compounded semiannually. The bond matures on 1/1/09 and is purchased with a settlement date of 11/01/04. Determine the full price of the bond on the settlement date. Assume the face amount is $100 and the redemption value is also $100. (The day count convention is 30/360.) A. less than $90 B. between $90 and $95 C. between $95 and $100 D. bigger than $100
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