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QUESTION 10 10 points Save Answer What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7%
QUESTION 10 10 points Save Answer What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? Hint: Use the rate of return formula and remember to include not only the change in price but also the coupon payments you received. 5.00% 5.33% 6.46% 7.00% QUESTION 11 10 points Save Answer How much should you be prepared to pay for a 10-year, $1000 face value bond with a 6% coupon, semi-annual payments, and a yield to maturity of 7.5%? Hint: Payments are 30, interest rate=3.75%, periods=20. $895.78 $897.04 $938.40 $1,312.66 QUESTION 12 10 points Save Answer Where does a "convertible bond" get its name from? The option of converting the bond into shares of common stock. The option of increasing its coupon payments when interest rates increase. The option of converting from a zero-coupon to a coupon-paying bond. The option of increasing yield without decreasing price
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