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E 2 AaRbCeDdE AaBbCcD ABCDE Emphasis Heading 1 Normal Stro 6. An investor purchased a corporate bond for $925. The bond matures in exactly one

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E 2 AaRbCeDdE AaBbCcD ABCDE Emphasis Heading 1 Normal Stro 6. An investor purchased a corporate bond for $925. The bond matures in exactly one year, has a par value at maturity of $1,000, and provides a fixed coupon rate of interest of 3% on the par value. (13 points) (a) Calculate the investor's realized rate of return if owned until maturity. Use 2 decimal places. (b) Have interest rates on corporate bonds of similar risk and maturity increased, decreased, or remained the same since this bond was originally issued? (c) Would a Treasury hond that also matures in exactly one year provide a rate of return that is equal to lower than, or higher than a corporate bond? 7. Corporation A is being acquired in its entirety by Corporation B. Consider the following financial data for Corporation A: total liabilities. S100, number of common shates, 10; total assets, S175 stock price per share, $20 [16 points] (ay Calculate the net assets being acquired from Corporation A by Corporation B. E 2 AaRbCeDdE AaBbCcD ABCDE Emphasis Heading 1 Normal Stro 6. An investor purchased a corporate bond for $925. The bond matures in exactly one year, has a par value at maturity of $1,000, and provides a fixed coupon rate of interest of 3% on the par value. (13 points) (a) Calculate the investor's realized rate of return if owned until maturity. Use 2 decimal places. (b) Have interest rates on corporate bonds of similar risk and maturity increased, decreased, or remained the same since this bond was originally issued? (c) Would a Treasury hond that also matures in exactly one year provide a rate of return that is equal to lower than, or higher than a corporate bond? 7. Corporation A is being acquired in its entirety by Corporation B. Consider the following financial data for Corporation A: total liabilities. S100, number of common shates, 10; total assets, S175 stock price per share, $20 [16 points] (ay Calculate the net assets being acquired from Corporation A by Corporation B

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