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Do not copy other answers. THEY ARE WRONG Solve and show the workings of each A bond pays coupons of size 30 every 6 -months
Do not copy other answers. THEY ARE WRONG
Solve and show the workings of each
A bond pays coupons of size 30 every 6 -months and the bond is redeemable for 1100 . Furthermore, you are given the following information: - The bond is purchased at P to yield and annual rate of 8% convertible semiannually. - The absolute difference between the book-value (i.e. bond value) after the 15th coupon and the book-value after the 16th coupon is 1.50 . Calculate P. Give your answer rounded to the nearest whole number (i.e. X ). A 30 -year 1000 par value bond with pays coupons of size 25.22 every 6 -months and redeems for par. The bond is purchased for a price that results in a nominal annual yield rate of 11.6% compounded semiannually. Suppose that the bond is called (i.e. redeemed) prior to the actual maturity date but immediately after a coupon payment is made. This early redemption results in an actual nominal yield rate convertible semiannually of 12.4%. Calculate the number of years that the bond was held. Give your answer rounded to the nearest whole number (i.e. X)Step by Step Solution
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