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An investor is considering the purchase of a 1 0 year ( 7 % coupon bond selling for $ 1 0 1 9 . 5
An investor is considering the purchase of a year coupon bond selling for $ and a par value of $ The yield to maturity for this bond is a What would be the total future dollars if this investor invested $ for years earning compounded semiannually? b What would be the total future dollars from the coupon payments and the repayment of principal at the end of years? c What are the total coupon payments over the life of this bond? d How much must the interest on interest on the coupon payments be earned by the investor? Using excel for all parts of the questions
An investor is considering the purchase of a year coupon bond selling
for $ and a par value of $ The yield to maturity for this bond is
a What would be the total future dollars if this investor invested $ for
years earning compounded semiannually?
b What would be the total future dollars from the coupon payments and the
repayment of principal at the end of years?
c What are the total coupon payments over the life of this bond?
d How much must the interest on interest on the coupon payments be earned
by the investor? Using excel for all parts of the questions
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