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Bond #1: 10 Year Maturity Bond #1 is a 10 year, 4.5% semiannual coupon bond. It has a par/face value of $5,000 and may be
Bond \#1: 10 Year Maturity Bond \#1 is a 10 year, 4.5% semiannual coupon bond. It has a par/face value of $5,000 and may be called in 6 years at a call price of $7,500. The bond sells for $5,250. Complete the information in the table below. \begin{tabular}{|l|r|l|l|l|l|} \hline 4 & Bond Information & & Formulas \\ \hline 5 & Years to maturity: & 10 & How long it is for \\ \hline 6 & Periods per year: & 2 & Number of times it pays interest \\ \hline 7 & Periods to maturity: & & Number of years x number of payment periods 25 years x2 period \\ \hline 8 & Coupon rate: & 4.5% & Your interest rate \\ \hline 9 & Par/face value: & $5,000 & Face value...aka the value of the bond \\ \hline 0 & Periodic payment: & & Par value x (coupon rate / periods per year) \\ \hline 1 & Current price & $5,250 & Sale price \\ \hline 2 & Call price: & $7,500 & Amount paid should the bond be called early...aka the person using the bond money pays their loan off early \\ \hline 3 & Years till callable: & 6 & When they can call it in, meaning pay you the $6000 for it \\ \hline 4 & Periods till callable: & & number of years x number of periods \\ \hline \end{tabular} Based on the bond information above, calculate the following information for Bond \#1: Hints: Formulas Annual Yield to Maturity = Use your periodic yield to maturity and the periods per year; this is Periodic yield to maturity x periods per year Annual Coupon Rate = Current yield = Annual Yield to Call = Use your periodic yield to call x periods per year; this is your yield Periodic yield to call x periods per year
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