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Find the price of a 7% coupon bond having a face value of $3,500, a yield to maturity of 9% and 6 years to

 

Find the price of a 7% coupon bond having a face value of $3,500, a yield to maturity of 9% and 6 years to maturity. Given the price of a perpetuity (or consol) = $5,000 and the yearly payment or coupon = $400, what is yield to maturity? What is the rate of return on a 10-year 8% coupon bond purchased for $2,500 and sold after 1 year when the interest rate rose to 10%? Also, what was the rate of capital gain or loss and what was the sales price? - Complete the following table.. 1929 Nominal Interest Rate = Percent A in CPI-U = Real Interest Rate = Nominal Interest Rate= Percent A in CPI-U = Real Interest Rate = 5.00% 0.00% 2018 5.00% 2.44% 1930 5.00% -2.70% 2019 5.00% 1,81% 1931 5.00% -8.90% 2020 5.00% 1.23% 1932 5.00% -10.30% 2021 5.00% 4.70% 1933 5.00% -5.20% 2022 5.00% 8.00%

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SOLUTION 1 The price of the 7 coupon bond with a 3500 face value 9 yield to maturity and 6 years to maturity is 261718 2 Given the perpetuity price of ... blur-text-image

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