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I need help with the following questions: Jonas paid $11,000 to buy a Canadian Tire bond with a face value (maturity value) of $11,000 that
I need help with the following questions: Jonas paid $11,000 to buy a Canadian Tire bond with a face value (maturity value) of $11,000 that matures in 25 years and has a coupon rate of 5% payable semi-annually. Question 1 (a) Calculate the semi-annual coupon payment. Coupon Payment = Question 2 Jonas sell the bond to Vikas in 4 years, when the interest rate on similar bonds is j2 = 6.6%. (b) How many coupons (payments) are left? Number of payments left = Question 3 Calculate the value of the bond when Jonas is selling to Vikas. Fill in the inputs for the BAll Plus and calculate the bond's value. Write CPT for whichever value you are computing. Keep sign for the coupon payments as positive. BAII Plus Inputs B/E = P/Y = C/Y = N = I/Y = PV = PMT = FV = Bond value = $ Question 4 Four years later, the interest rate for comparable bonds has dropped to j2 = 3.4%. Vikas decides to sell the bond. How much is Vikas' expected gain or loss on the sale of the bond? Vikas' expected gain/loss = $ (make positive if gain and negative if loss) Thank you Kind regards
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