Consider a $5000-face-value Hydro Quebec strip bond from the issue in Table 8.3 that matures on August
Question:
Consider a $5000-face-value Hydro Quebec strip bond from the issue in Table 8.3 that matures on August 26, 2020. If the yield does not change as years go by, what is the bond's value on
a. August 26, 2017?
b. August 26, 2018?
c. August 26, 2019?
Table 8.3
Transcribed Image Text:
Issuer Maturity date Price quotation date Price ($) Yield (%) August 26, 2016 August 27, 2018 Nova Scotia Power Corp. Newfoundland & Labrador Hydro Hydro Quebec Nova Scotia Power Corp. February 26, 2016 February 27, 2016 February 26, 2016 February 26, 2016 99.71 0.59 97.57 0.99 August 26, 2020 February 26, 2021 93.56 1.49 89.68 2.20
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Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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