1: Indicate the nominal value to be purchased for the target defined 2: Indicate the effective value
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Question:
1: Indicate the nominal value to be purchased for the target defined
2: Indicate the effective value to be purchased for the target defined
3: Indicate the annual amount of coupon in SAR that we will receive
4: How much could be lost in value (effective value) in case of an immediate 0.10% increase in the YTM?
Settlement date: 15th OCTOBER 2023, we are going to buy Saudi bond.
Coupon: 2.72% (semiannual 30360, coupons are paid every 26 October and 26 April)
Maturity: 26th April 2026
Yield to Maturity: 5,40%
You are willing to obtain the following cash flows (SAR) just from the coupons, apart from the principal:
Expected cash flows
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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