Question
background information: clifford clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested
background information: clifford clark is a recent retiree who is interested in investing some of his savings in corporate bonds. His financial planner has suggested the following bonds:
*bond a - 7% annual coupon, matures 12 years, and has a $1,000 face value.
*bond b - 9% annual coupon, matures in 12 years, and has a $1,000 face value.
*bond c - 11% annual coupon, matures in 12 years, and has a $1,000 face value.
e. Mr. Clark is considering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face value (ie : it pays a $40 coupon every 6 months). Bond D is scheduled to mature in 9 years and has a price of $1,150. It is also callable in 5 years at a call price of $1,040.
years to maturity for bond d? periods per year for bond d? period to maturity for bond d? coupon rate for bond d? par value for bond d? periodic payment for bond d ? current price for bond d ? call price for bond d ? years until callble for bond d ? periods untill callbale for bond d ? YTM= and YTC=
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