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Four years ago, Dean, Inc issued a bond with a par value = $1,000, Coupon rate = 8.0% annum, payable every 6months, and a maturity
- Four years ago, Dean, Inc issued a bond with a par value = $1,000, Coupon rate = 8.0% annum, payable every 6months, and a maturity of 10years.The YTM of similar bonds today is 11.0%. What is the price of Dean's Bond today?
- Jenni bought Dean's Bond (as in Q#1) at $1,025 when it was originally issued. If she holds on to Dean's bond until it matures, what ANNUALIZED rate of return will he earn?
- (From Q#1 & Q#2): If Jenni decides to sale Dean's bond today, what ANNUALIZED rate of return would she earn?
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Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
