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PLEASE SHOW ALL WORK!! FOR THIS AND THE NEXT QUESTION . A 5-year BBB corporate bond is currently selling at 34.19 percent above par with

PLEASE SHOW ALL WORK!!

FOR THIS AND THE NEXT QUESTION. A 5-year BBB corporate bond is currently selling at 34.19 percent above par with a coupon rate of 13.75%. Note that par value = $1,000. Coupons are paid semiannually. Calculate this bond's yield to maturity.

A. 5.67%

B.3%

C.5.78%

D.Less than 5%

E.10.25%

Calculate the bond's current yield.

A. 5.67%

B. 3%

C. 5.78%

D. Less than 5%

E. 10.25%

FOR THIS AND THE NEXT 2. A bond rated AAA has a current market price of $800, a coupon interest rate of 10%, and a 10-year maturity. Interest is paid SEMIANNUALLY. If the bond's par value is $1,000, what is its yield to maturity (YTM)?

A. 6.82%

B. 13.74%

C. 14.74%

D. None of the above

Calculate the realized compound yield (RCY) if the coupons can be reinvested at an average annual rate of 7%.

A. 11.21%

B. 11.61%

C. 12.54%

D. 13.54%

E. None of the above

Suppose the investor expects to sell the bond 5 years from now for $900. What is the investor's holding period yield?

A. About 7%

B. About 10%

C. 14.3%

D. 15.02%

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