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answer all 3 A Government of Ontario bond has seven years remaining to maturity. The face value is $1,000, the annual coupon rate is 8%
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A Government of Ontario bond has seven years remaining to maturity. The face value is $1,000, the annual coupon rate is 8% (payable in semiannual instalments) and the current market rate of return is 6% compounded semiannually. What is the market value of the bond? Select one: a. 5977 b. $1,113 C. $829 d. $1,186 e. $1,000 A hydro bond with a face value of $5,000 and twenty years remaining until maturity pays a coupon Date of 3.2% compounded semiannually. Calculate its effective yield to maturity if it is priced at $4,800. Select one: a. 4.5196 b. 1.26% C.3.5196 d. 2.51% e. 7.02% Calculate the market value of the following Petro-Canada $10,000 bond. The annual coupon rate (payable in semiannual instalments) is 6%, the current market rate is 7.8% compounded semiannually and the bond will mature in 13 years. Select one: a. $13,932 b. $8,874 c. $8,546 d. $11,260 e. $9,036Step by Step Solution
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