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Can someone help with this problem? attached as an example to help #6 (HM4.4) An investor bought a 1000 par value bond with 6.5% annual
Can someone help with this problem? attached as an example to help
#6
(HM4.4) An investor bought a 1000 par value bond with 6.5% annual coupons. The maturity date was exactly 24 years after the purchase date and the redemption value was to be equal to the par value. The bond was purchased at a premium to yield 4.5% per annum. 4 years later, just after payment of the coupon, the bond was called in at 113.85% of par value. What was the investor's rate of return on his investment? 4. An investor bought a 1000 par value bond with 7.5% annual coupons. The maturity date was exactly 18 years after the purchase date and the redemption value was to be equal to the par value. The bond was purchased at a premium to yield 6% per annum. 3 years later, just after payment of the coupon, the bond was called in at 102.8% of par value. What was the investor's rate of return on his investment? [7.f #04] A) 2.7% B) 2.2% C) 2.3% D) 2.4% E) 2.6% P = 75 a 18160% + 1000v 18 = 1162.4141 1162.4141 = 75 237 + 102843 i = 2.7% (HM4.4) An investor bought a 1000 par value bond with 6.5% annual coupons. The maturity date was exactly 24 years after the purchase date and the redemption value was to be equal to the par value. The bond was purchased at a premium to yield 4.5% per annum. 4 years later, just after payment of the coupon, the bond was called in at 113.85% of par value. What was the investor's rate of return on his investment? 4. An investor bought a 1000 par value bond with 7.5% annual coupons. The maturity date was exactly 18 years after the purchase date and the redemption value was to be equal to the par value. The bond was purchased at a premium to yield 6% per annum. 3 years later, just after payment of the coupon, the bond was called in at 102.8% of par value. What was the investor's rate of return on his investment? [7.f #04] A) 2.7% B) 2.2% C) 2.3% D) 2.4% E) 2.6% P = 75 a 18160% + 1000v 18 = 1162.4141 1162.4141 = 75 237 + 102843 i = 2.7%Step by Step Solution
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