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Help please. 1)Wee Beastie Animal Farm bonds have8years to maturity and pay an annual coupon at the rate of 5.6 %. The face value of
Help please.
1)Wee Beastie Animal Farm bonds have8years to maturity and pay an annual coupon at the rate of 5.6 %. The face value of the bonds is$1000. The price of the bonds is$1,050.11to yeild 4.83%. What is the capital gain yield on thebonds?
2) Consider an annual coupon bond with a face value of$100 ,4years tomaturity, and a price of$75.The coupon rate on the bond is8 %.If you can reinvest coupons at a rate of2.5 %perannum, then how much money do you have if you hold the bond tomaturity?
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