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Calculate answers to 6 decimal places before converting to a percentage. Ian Anderson purchases a corporate bond that matures in 5 years, has a 4.25%

Calculate answers to 6 decimal places before converting to a percentage.

Ian Anderson purchases a corporate bond that matures in 5 years, has a 4.25% coupon interest rate, and is currently priced at $100.75 per $100 in face value. The yield to maturity is closest to: (please calculate semi-annually)

A.

4.0826%.

B.

2.0406%.

C.

2.0413%.

Harvey Dent wants to sell the $38,000 TriForce bonds he purchased 3 years ago at par value. The bonds have a 3.75% coupon, 4 years to maturity, and are trading at a 4.10% yield to maturity. If Harvey sells the bonds today, his proceeds from the sale would result in: please calculate (semi-annually)

A.

a loss of $486.10.

B.

a gain of $486.10.

C.

a loss of $481.64.

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