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PLEASE EXPLAIN THE ANSWERS CLEARLY QUESTION 1 (continued) c) Calculate the market price of each bond on 23rd April 2021 that issued by AAA Ltd.,
PLEASE EXPLAIN THE ANSWERS CLEARLY
QUESTION 1 (continued) c) Calculate the market price of each bond on 23rd April 2021 that issued by AAA Ltd., using the data provided in the table below. What is the current total value of minimum application? Time to Maturity 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 7 Yr 10 Yr U.S. Treasury Bond Yield 0.12% 0.14% 0.20% 0.25% 0.27% 0.46% 0.67% Corporate Bonds Fact Sheet Issuer Issuing date Bond expiration date Face value Minimum application Interest rate AAA Company Ltd. 23rd April 2021 25th April 2025 $ 1000 per bond. 50 Bonds ($ 50,000) Floating Interest Rate. The Interest Rate is the sum of the Market Rate plus the Margin. Central Government Bond Yield + 1.86% p.a. Annually (coupon payment is paid on 10th July every year) 4.00% Coupon rate (annual) Coupon payment Market YieldStep by Step Solution
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