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Suppose on 09/18/2020 you observe the following quote for corporate bonds of Home Depot. Assume that the bonds make semi-annual payments. Find YTM for the
Suppose on 09/18/2020 you observe the following quote for corporate bonds of Home Depot. Assume that the bonds make semi-annual payments.
- Find YTM for the bonds. Use Excel, state your result and Excel function inputs
Issue Price Coupon(%) Maturity
Home Depot Inc 93.51 5.875 16-Dec-36
- What can be said about expected rate of investment return on the Home Depot bonds if they are AA-rated?
- What would be your answer to question b) if you learn that the rating of the bonds is BBB?
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