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How do you do part C? PROBLEM 9: Consider a bond with annual coupon payments. You purchased the bond when it was originally issued. Immediately

image text in transcribedHow do you do part C?

PROBLEM 9: Consider a bond with annual coupon payments. You purchased the bond when it was originally issued. Immediately afterwards, the YTM changed and remained at this new level indefinitely. Today at the end of year 5 (immediately after the 5th coupon payment), your bond investment has the following characteristics: Total Interest (Coupons) = Interest-on-Intere Total Income = Realized Return (annual) = $7,671.45 $1,410.73 $11,183.86 11.524953% State rates as a percentage with 6 digits after the decimal point. Please, calculate the following: a. YTM at the end of Year 5 (ANSWER 8.450000%) b. Realized yield (annual) at the end of Year 8 (ANSWERA1.003364%) c. Realized return (annual) at maturity (ANSWER 9.111174%) TSEEK HELP FROM OTHER INSTRUCTORS PROBLEM 9: Consider a bond with annual coupon payments. You purchased the bond when it was originally issued. Immediately afterwards, the YTM changed and remained at this new level indefinitely. Today at the end of year 5 (immediately after the 5th coupon payment), your bond investment has the following characteristics: Total Interest (Coupons) = Interest-on-Intere Total Income = Realized Return (annual) = $7,671.45 $1,410.73 $11,183.86 11.524953% State rates as a percentage with 6 digits after the decimal point. Please, calculate the following: a. YTM at the end of Year 5 (ANSWER 8.450000%) b. Realized yield (annual) at the end of Year 8 (ANSWERA1.003364%) c. Realized return (annual) at maturity (ANSWER 9.111174%) TSEEK HELP FROM OTHER INSTRUCTORS

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