7.4?

CHAPTER 7 238 7.3 Louis bought a $100 par value 5-year bond with 10% semiannual coupons at a purchase price of $94. After receiving the 5th coupon, Louis sold the bond to Raymond. Find the yield to maturity for Raymond, if the realized yield for Louis is 12% compounded semiannually. 7.4 You are given the following incomplete bond amortization schedule for a $1,000 par value 10-year bond with semiannual coupons, purchased at $864.9. The bond is not redeemable at par. Half- year Coupon payment Effective interest earned Amortized amount of premium - 10.068 Book value 13 - 10.827 (a) Find the yield to maturity of the bond. (b) Find the redemption value of the bond. (Hint: Study the column "amount amortized" in Table 6.3 carefully. 7.5 The following shows the information of a bond: Type of Bond Issue Date Non-callable municipal bond June 20, 2011 CHAPTER 7 238 7.3 Louis bought a $100 par value 5-year bond with 10% semiannual coupons at a purchase price of $94. After receiving the 5th coupon, Louis sold the bond to Raymond. Find the yield to maturity for Raymond, if the realized yield for Louis is 12% compounded semiannually. 7.4 You are given the following incomplete bond amortization schedule for a $1,000 par value 10-year bond with semiannual coupons, purchased at $864.9. The bond is not redeemable at par. Half- year Coupon payment Effective interest earned Amortized amount of premium - 10.068 Book value 13 - 10.827 (a) Find the yield to maturity of the bond. (b) Find the redemption value of the bond. (Hint: Study the column "amount amortized" in Table 6.3 carefully. 7.5 The following shows the information of a bond: Type of Bond Issue Date Non-callable municipal bond June 20, 2011