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please show steps with calculator Amazon has a semi-annual bond that matures on June 3, 2060. This bond pays a coupon rate of 2.70%, has
please show steps with calculator
Amazon has a semi-annual bond that matures on June 3, 2060. This bond pays a coupon rate of 2.70%, has 30/360 daycount, and a clean price on February 18, 2022 of $83.446 You plan to buy this bond in February 18, 2022 and hold it for exactly 10 years (so you sell it on February 18, 2032, a Wednesday). You expect to re-invest all coupons payments at a rate of 3.25% and that when you sell the bond in 2032 its yield to maturity will be 3.50%. (a) Calculate the net present value (NPV) of your investment. Amazon has a semi-annual bond that matures on June 3, 2060. This bond pays a coupon rate of 2.70%, has 30/360 daycount, and a clean price on February 18, 2022 of $83.446 You plan to buy this bond in February 18, 2022 and hold it for exactly 10 years (so you sell it on February 18, 2032, a Wednesday). You expect to re-invest all coupons payments at a rate of 3.25% and that when you sell the bond in 2032 its yield to maturity will be 3.50%. (a) Calculate the net present value (NPV) of your investment Step by Step Solution
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