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Dewey Cheetham & Howe Accounting firm is considering the purchase of a $ 1 , 0 0 0 New Haven Municipal Bond. The stated coupon
Dewey Cheetham & Howe Accounting firm is considering the purchase of a $ New Haven Municipal Bond. The stated coupon rate is paid biannually times a year The bond will mature in years. The YTM for similar bonds is
a How much should the market price of the bond be
b How much is the effective rate of VTM I
c For the current year, how much is the current yield?
d For the current year, how much is the capital gains yield?
e What should the market price be if the coupon were paid annually?
f If the current market price of the bond is $ find the YTM with the original biannual coupon.
g What is the Yield to Call if the bond is callable in years at a premium with the original price and biannual coupon? Use the price of the bond in part a
SHOW WORK IN EXCEL.
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