commercial banking

Q16.You purchase a 8-year bond at $94 per $100 par value that pays a 7.2% coupon per annum. Further assume that bond pays coupon semi-annually, and coupons can be reinvested at 3.1% semi- annually for first 6 years. The yield to maturity of a 2-years comparable bond after 6 years is 5%. If you hold the bond for 6 years, what will be your total return? Please write the answer in four decimal places and NOT PERCENTAGE.

Question 16 5 points Save You purchase a 8-year bond at $94 per $100 par value that pays a 72% coupon per annum. Further assume that bond pays coupon manually and coupons can be reinvented 3.1% semi- Antally for first 6 years. The yield to maturity of ix2-year comparable bord after years is you hold the bond for 6 years, what will be your total return? Please write the answer in four decimal places and NOT PERCENTAGE, Question 12 A 121-day Treasury bill is quoted as having a 6% bond equivalent yield. What is the effective annual yield? A Moving to another question will save this response