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Consider two 30-year bonds, P and Q with the same purchase price. Each has an annual coupon rate of 5% paid semi-annually and a par
Consider two 30-year bonds, P and Q with the same purchase price. Each has an annual coupon rate of 5% paid semi-annually and a par value of RM500.
Bond P has an annual nominal yield rate of 5% compounded semi-annually, and a redemption value of RM575.
Bond Q has an annual nominal yield rate of j% compounded semi-annually, and a redemption value of RM450.
(i) Calculate j.
(ii) The book value of Bond Q after the payment of 25th coupon
(iii) The amount for accumulation of discount in the 36th coupon of Bond P.
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
