Question
A 5.75 percent coupon bond with 18 years left to maturity can be called in eight years. The call premium is one year of coupon
A 5.75 percent coupon bond with 18 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,147.10. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)
Value of stock
Calculate the price of a 6.9 percent coupon bond with 15 years left to maturity and a market interest rate of 8.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your finalanswer to 2 decimal places.)
Bond price $
10- W-4Following are three economic states, their likelihoods, and the potential returns:
Economic State Probability Return
Fast Growth 0.20 30 %
Slow Growth 0.58 5
Recession 0.22 -35
Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.)
Standard deviation %
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