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Victoria bond is a premium bond with 6% coupon. Houston bond is a 7 % coupon bond Both bonds make annual payments and have a
| Victoria bond is a premium bond with 6% coupon. Houston bond is a 7 % coupon bond | |||||||||
| Both bonds make annual payments and have a yield to maturity (YTM) of | |||||||||
| 6%, and have 10 years till maturity | |||||||||
| a. Estimate their prices (Bond prices). | |||||||||
| b. Estimate their current yields | |||||||||
| c. If interest rates remain unchanged by next year, estimate their prices a year from now. | |||||||||
| d. Estimate their first year capital gain yields. Hint: CGY = (P1-P0)/P0 |
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Cases In Healthcare Finance
Authors: Louis Gapenski
5th Edition
1567936113, 978-1567936117
