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Please do 7-29 and 7-33 tables. Please do both questions. Thanks 7-29 A man buys a corporate bond from a bond brokerage house for $875.
Please do 7-29 and 7-33 tables. Please do both questions. Thanks 7-29 A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon rate paid semiannually. If the bond will be paid off at the end of 12 years, what rate of return will the man receive? Anh an APA nn 7-29 PV = FV = NPER PMT= RATE = semi-annual rate - nominal rate= effective rate 7-33 An investor purchased a 5%, $1000 30-year bond for $850 with 22 years to maturity. The interest was payable quarterly. The bond was kept for only 9 years and sold for $950 immediately after the 36th interest payment was received. What nominal 7-33 PV = FV = NPER = PMT = RATE quarterly rate nominal rate effective rate =
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