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Evaluate the following pure-yield pickup swap: You currently hold 15-year, AA-rated, 100% coupon bonc priced to yield 12.0%. As a swap candidate, you are considering

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Evaluate the following pure-yield pickup swap: You currently hold 15-year, AA-rated, 100% coupon bonc priced to yield 12.0%. As a swap candidate, you are considering a 15- year, AA-rated, 11.5% coupon bond priced to yield 12.5%. (Assume reinvestment at 12.5%, 51,000 par value, semiannual coupons.) Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers and value of swap to two decimal places. You may use Appendix to answer the questions Current Bond Candidate Bond Dollar investment $ $ Annual coupon $ $ on one coupon Principal value at year end $ $ Total accrund 5 $ Realized compound yield $ $ Value of swap basis points in one year Evaluate the following pure-yield pickup swap: You currently hold 15-year, AA-rated, 100% coupon bonc priced to yield 12.0%. As a swap candidate, you are considering a 15- year, AA-rated, 11.5% coupon bond priced to yield 12.5%. (Assume reinvestment at 12.5%, 51,000 par value, semiannual coupons.) Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers and value of swap to two decimal places. You may use Appendix to answer the questions Current Bond Candidate Bond Dollar investment $ $ Annual coupon $ $ on one coupon Principal value at year end $ $ Total accrund 5 $ Realized compound yield $ $ Value of swap basis points in one year

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