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Use excel in all of the problems. 1) Dewey Cheetham & Howe Accounting firm is considering the purchase of a $1,000 New Haven Municipal Bond.
Use excel in all of the problems. 1) Dewey Cheetham & Howe Accounting firm is considering the purchase of a $1,000 New Haven Municipal Bond. The stated coupon rate is 5%, paid semi-annually (twice a year) The bond will mature in 20 years. The YTM for similar bonds is 2.5%. e) What should the market price of the bond be if YTM were 6% annually? f) Explain why an investor would buy a bond at a premium or at a discount g) What is the Yield to Call if the bond is callable in 10 years at a 12% premium with the original semi-annual coupon
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