'Semiannual coupons' presentation slideshows

DISCUSS A 3 YEAR BOND WITH SEMIANNUAL / TUTORIALOUTLETDOTCOM

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Suppose a bond that has semiannual couponsFocus Dreams/tutorialoutletdotcom

FOR MORE CLASSES VISIT www.tutorialoutlet.com 1. Suppose a bond that has semiannual coupons is selling for $10,500. It has 7 years left until maturity. Its par value is $10,000 and its YTM is 7%. What is this bond’s annual coupon rate? 2. If the bank paid me 9.98% interest per year and if my actual return (the increase in my purchasing power) was only 5.25%, what was the inflation rate during the year? 3.

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1. A $1,000 face value bond with an 8.0000% coupon rate paying semiannual coupons has 10 years of maturity has a fair market value of $1,034.74. a. What is this bond’s yield to maturity? 7.5000% b. If this bond’s yield to maturity changes to 9.0000%, what would be this bond’s price? $934.96

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