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The PG bond with February 1, 2034 maturity was selling for 103% of its face value on February 1, 2009. If the coupon rate of
The PG bond with February 1, 2034 maturity was selling for 103% of its face value on February 1, 2009. If the coupon rate of the bond is 5.0% with semiannual coupon payments, what was the YTM of the bond on that day? a. Suppose you purchased the keep the bond for 10 years. You expect the YTM of the bond to be 8% at the time ofthe sale and the annual reinvestment rate of the coupons to be 6%, what is your annual realized yield of this investment? b. G bond for $1,030 on February 1, 2009. You plan to
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