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Part F.2 The following information is for solving Questions 49 to 52 On April 1 st , 2018, Yugo purchased a corporate bond of IJK

Part F.2

The following information is for solving Questions 49 to 52

On April 1st, 2018, Yugo purchased a corporate bond of IJK Limited for its face value of $1,000. The bond pays a 4.5 percent coupon rate, which are paid semi-annually, and it will be maturing on April 1st, 2028. On April 1st, 2020, similar bonds are paying a coupon rate of 2.5 percent, and Yugo plans to sell his bond.

Question 49

What would be the dollar amount of each semi-annual coupon, Yugo would receive?

Question 49 options:

$45.00

$22.50

$40.00

$20.00

None of the Above

Question 50

What would be the market price of the IJK bonds on April 1st, 2020, based on the market coupon rate?

Question 50 options:

$1,038.78

$1,000.00

$990.59

$995.15

None of the Above

Question 51

What would be the capital gains/loss ($ dollar amount) would Yugo receive from selling the IJK bond?

Question 51 options:

$38.78

$0.00

-$94.10

-$48.50

None of the Above

Question 52

What would be the capital gains/loss (% percent return) would Yugo receive from selling the IJK bond?

Question 52 options:

-0.49%

3.88%

-0.94%

0.00%

None of the Above

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