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Please answer the question and do explain as much as possible. Thanks. Text is clear tell me what part of it you do not understand.
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Text is clear tell me what part of it you do not understand. Sorry for my handwriting
Part C and D
Finance exercise Information Bond Brand: LG 8% maturing 20 May 2021 It is an Annual coupons which is to be settled The Bond price is us 98 and denomination is USD 100 20 May 2018 is the settlement date (a) Find the discounted cashto flows equation of the bond and determine the yield to Maturity apprestimated figure. (6) What is the yield to call and yield to worst if on May 2020, the above bond to can be callable at us as. (c) Determine the option adjusted price if us is the call option price of the bond (d) As per the call option price of us 7 Find an estimate for the option adjusted yield c) Determine the option adjusted price of us 7 is the call option price of the bond. (d) If the call option price is us7, Find an estimate for the option adjusted yield
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The Oxford Handbook Of Credit Derivatives
Authors: Alexander Lipton, Andrew Rennie
1st Edition
0199546789, 978-0199546787
