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Mike is interested in purchasing a bond that matures in 15 years, pays a 9.0% coupon semiannually and has a yield to maturity of
Mike is interested in purchasing a bond that matures in 15 years, pays a 9.0% coupon semiannually and has a yield to maturity of 6.0%. a. What is the price of the bond? b. What is the current yield and capital gains yield? c. If the bond is callable after 5 years at a price of $1100, what would be your annual yield to call?
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Inputs Assuming Face Value 1000 SemiAnnual Compounding Time Period 15 years 2 30 semi annual periods Coupon Coupon Rate 2 Face Value 92 1000 45 YTM 62 ...
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
