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Can you please solve this exercise thank you 3. A 5-years maturity, coupon 2% was issued by Telefonica Corporation (face value 1,000 euros) the 15/10/2017
Can you please solve this exercise thank you
3. A 5-years maturity, coupon 2% was issued by Telefonica Corporation (face value 1,000 euros) the 15/10/2017 and bought by the investor Jhon. The 20/10/2019 Jhon sells the bond and is bought by Peter. That day (20/10/2019), the bond trades at 102.5 % (clean or ex- coupon price) (information got from Reuters). Get the following... a) The full price (dirty price) paid by Peter. b) The yield or IRR of the Peter's investmentStep by Step Solution
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