A fixed interest stock pays an annual coupon of 9.1% per annum 4 monthly in arrears...
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A fixed interest stock pays an annual coupon of 9.1% per annum 4 monthly in arrears and is redeemed at 95% at any time between 6 and 15 years from the date of isssue at the option of the borrower. Calculate, to 2 decimal places, the ex-dividend price (per £350,000 nominal) 1 month before the first coupon payment that should be paid by an investor requiring a net redemption yield of 6.2% per annum effective. Assume that the investor is subject to income tax at a rate of 23%. Answer: A fixed interest stock pays an annual coupon of 9.1% per annum 4 monthly in arrears and is redeemed at 95% at any time between 6 and 15 years from the date of isssue at the option of the borrower. Calculate, to 2 decimal places, the ex-dividend price (per £350,000 nominal) 1 month before the first coupon payment that should be paid by an investor requiring a net redemption yield of 6.2% per annum effective. Assume that the investor is subject to income tax at a rate of 23%. Answer:
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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