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Can someone pls answere this, kinda urgent Thank you <3 Part b The following data relate to a corporate bond that pays coupons semi-annually: Settlement

Can someone pls answere this, kinda urgent Thank you <3

Part b The following data relate to a corporate bond that pays coupons semi-annually: Settlement date 01 March 2022 Maturity date 31 December 2045 Coupon rate 9% Yield to maturity 10% Face value $1,000 Percentage of face value paid back to the investor on maturity 100% Using the above data, calculate

i. The flat price of the bond

ii. Accrued interest

iii. Invoice price of the bond Note: Show the assumptions, if any, you made in your calculations. 3+2+1 = 6 marks

Part c A company must make a payment of $24,759 in 8 years. The market interest rate is 12%. The companys portfolio manager wishes to fund the obligation using four-year zero-coupon bonds and perpetuities paying annual coupons. How can the manager immunise the obligation? Suppose two years have passed, and the interest rate remains at 12%. Is the position still fully funded? Is it still immunised? If not, what actions are required?

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