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Questions 4,7,8 please. I would appreciate if you could also show formulas. Thank you! :) There are 10 questions (@2 pts, for 20 points total).
Questions 4,7,8 please. I would appreciate if you could also show formulas. Thank you! :)
There are 10 questions (@2 pts, for 20 points total). On September 27, 2015, Koala, Inc. issued a 10 year bond with a typical $1,000 face value) that had an annual coupon value of $65..[We are assuming that the 2021 coupon has just been redeemed.] Initially, the bond was sold at a discount price of $978. On September 27, 2021, this bond was selling at a premium for $1,010. The market rate of interest for a riskless corporate bond, of this maturity (i.e., a Treasury security), was 2.8% on September 27, 2015, which reflects market expectations about future rates of inflation. The market rate of interest for a riskless corporate bond, of this maturity (i.e., a Treasury security), was 1.9% on September 27, 2021, which reflects market expectations about future rates of inflation. 1. What was the nominal yield on this bond on September 27, 2015.[To 1 decimal place.] 6.5% 2. What was the current yield on this bond on September 27, 2015?[To 3 decimal places.] 6.65% 3. What was the yield to maturity for this bond on September 27, 2015?..[To 2 decimal places.] 6.21% 4. What was the risk premium for this bond on September 27, 2015...[To 2 decimal places.] 5. What was the nominal yield on this bond on September 27, 2021? [To 1 decimal place.] 6.5% 6. What was the current yield on this bond on September 27, 2021? [To 3 decimal places.]6.4% 7. What was the yield to maturity for this bond on September 27, 2021?[To 2 decimal places.] 8. What was the risk premium for this bond on September 27, 2021? [To 2 decimal places.]Step by Step Solution
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