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Please show how/why! Maturity Bid Price Asked Price Chg Asked Yield to Maturity (%) 0.888 2017, Nov 15 2018, Nov 15 2022, Nov 15 2025,
Please show how/why!
Maturity Bid Price Asked Price Chg Asked Yield to Maturity (%) 0.888 2017, Nov 15 2018, Nov 15 2022, Nov 15 2025, Nov 15 2028, Nov 15 2039, Nov 15 2044, Nov 15 Coupon 4.25 1.25 1.625 2.25 5.25 106.6250 100.1484 97.3047 99.7500 130.3906 124.6406 98.5859 106.6406 100.1641 97.3203 99.7656 0.0078 0.1094 0.3281 0.3516 1.194 2.038 2.276 2.493 2.935 0.3828 4.375 130.4531 124.6719 98.6172 0.4766 0.3750 3 3.072 A) How much would you pay to the dealer to purchase November 2025 bond? How much interest would you receive? (Hint: Check the TN Bond Valuation Fall21] B) Suppose you own November 2039 4.375% coupon bond, and want to sell it to the dealer. How much will you get from the dealer for each bond you own? Maturity Bid Price Asked Price Chg Asked Yield to Maturity (%) 0.888 2017, Nov 15 2018, Nov 15 2022, Nov 15 2025, Nov 15 2028, Nov 15 2039, Nov 15 2044, Nov 15 Coupon 4.25 1.25 1.625 2.25 5.25 106.6250 100.1484 97.3047 99.7500 130.3906 124.6406 98.5859 106.6406 100.1641 97.3203 99.7656 0.0078 0.1094 0.3281 0.3516 1.194 2.038 2.276 2.493 2.935 0.3828 4.375 130.4531 124.6719 98.6172 0.4766 0.3750 3 3.072 A) How much would you pay to the dealer to purchase November 2025 bond? How much interest would you receive? (Hint: Check the TN Bond Valuation Fall21] B) Suppose you own November 2039 4.375% coupon bond, and want to sell it to the dealer. How much will you get from the dealer for each bond you ownStep by Step Solution
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