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Fundamentals of Investment Chapter 3 Questions and Problems: (Note: students will be responsible for checking each question to make sure it is free of mistakes

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Fundamentals of Investment Chapter 3 Questions and Problems: (Note: students will be responsible for checking each question to make sure it is free of mistakes with regard to numbers and information) 5. You purchase 3.000 bonds with a par value of S1,000 for $980 each. The bonds have a coupon rate of 7.2 percent paid semiannually and mature in 10 years. How much will you receive on the next coupon date? How much will you receive when the bonds mature? 7. You purchase 10 call option contracts with a strike price of $75 and a premium of $3.85. If the stock price at expiration is $82, what is your dollar profit? What if the stock price is $72? 12. (Refer to the corn future quotes for problems 11-13 page 97 to answer this question) suppose you sell 25 of the May corn futures at the high price of the day. You close your position later when the price is 465.375. Ignoring commission, what is your dollar profit on this transaction? 2 D

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