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Dominique LeBlanc is the owner of a new ten-year $50,000 8% par-value bond with a Bermuda option and annual coupons. Allowable call dates are at

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Dominique LeBlanc is the owner of a new ten-year $50,000 8% par-value bond with a Bermuda option and annual coupons. Allowable call dates are at the ends of years 6 through 10, and the call premium at the end of year n is $300(10 - n). Dominique purchased the bond for $51,244.

(a) Find the lowest yield that Dominique may receive during the period she holds the bond as well as the highest. (Round your answers to two decimal places.)

lowest yield rate

highest yield rate

(b) Upon receipt, Dominique deposits each coupon and the redemption amount in an account earning 7%. Find the lowest yield that Dominique may receive during the ten-year period and also the highest. (Round your answers to two decimal places.)

lowest yield rate

highest yield rate

Dominique LeBlanc is the owner of a new ten-year $50,000 8% par-value bond with a Bermuda option and annual coupons. Allowable call dates are at the ends of years 6 through 10, and the call premium at the end of year n is $300(10 - n). Dominique purchased the bond for $51,244. (a) Find the lowest yield that Dominique may receive during the period she holds the bond as well as the highest. (Round your answers to two decimal places.) lowest yield rate highest yield rate % % (b) Upon receipt, Dominique deposits each coupon and the redemption amount in an account earning 7%. Find the lowest yield that Dominique may receive during the ten-year period and also the highest. (Round your answers to two decimal places.) lowest yield rate % highest yield rate % Dominique LeBlanc is the owner of a new ten-year $50,000 8% par-value bond with a Bermuda option and annual coupons. Allowable call dates are at the ends of years 6 through 10, and the call premium at the end of year n is $300(10 - n). Dominique purchased the bond for $51,244. (a) Find the lowest yield that Dominique may receive during the period she holds the bond as well as the highest. (Round your answers to two decimal places.) lowest yield rate highest yield rate % % (b) Upon receipt, Dominique deposits each coupon and the redemption amount in an account earning 7%. Find the lowest yield that Dominique may receive during the ten-year period and also the highest. (Round your answers to two decimal places.) lowest yield rate % highest yield rate %

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