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How to do this in calculater A 20-year U.S. corporate bond sold to investors at a price of $975 with a 10 percent coupon rate

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A 20-year U.S. corporate bond sold to investors at a price of $975 with a 10 percent coupon rate is called 11 years later at an eleven percent call premium. At the time of call, prevailing rates on comparable securities were 6 percent. If the bond's holder reinvested the call price at 6 percent for 9 years, what is his 20-year holding period yield? Show your work below. ANSWER: 10-year holding period yield: y_c $975 $100/2 times (1 - 1/(1 + y_c/2)^11 times 2/y_c/2) + [sigma_t = 23^40 $1,110 times .06/2/(1 + y_c/2)^t] + $1,110/(1 + y_c/2)^20 times 2 A 20-year U.S. corporate bond sold to investors at a price of $975 with a 10 percent coupon rate is called 11 years later at an eleven percent call premium. At the time of call, prevailing rates on comparable securities were 6 percent. If the bond's holder reinvested the call price at 6 percent for 9 years, what is his 20-year holding period yield? Show your work below. ANSWER: 10-year holding period yield: y_c $975 $100/2 times (1 - 1/(1 + y_c/2)^11 times 2/y_c/2) + [sigma_t = 23^40 $1,110 times .06/2/(1 + y_c/2)^t] + $1,110/(1 + y_c/2)^20 times 2

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