If a 1000 taka face value bond paying 9% coupon semi-annually when the interest rate is 16%

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If a 1000 taka face value bond paying 9% coupon semi-annually when the interest rate is 16% but selling in the market for 680 taka. Should you buy this bond? Find Current Yield and YTM of this bond.

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Apr 27, 2024 07:31 AM

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If a 1000 taka face value bond paying 9% coupon semi-annually when the interest rate is 16%

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Expert Answer:

To determine whether you should buy this bond we need to calculate the current yield and yield to maturity YTM and compare them to the market interest ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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