You are considering purchasing a $10,000 bond on January 14, 2020. The bond matures on July...
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You are considering purchasing a $10,000 bond on January 14, 2020. The bond matures on July 14, 2021. The bond pays semi-annual coupons at i (2) = 8%. Assuming you require a yield rate of i (2) = 6%, (a) Calculate the values of P, I (= k Fr), and Qevery 10 days, starting on January 14, 2020 and going until July 14, 2021. (Make sure you calculate the values on July 14/20, January 14/21 and July 14/21 in addition to the values every 10 days). (b) Graph the values of P and Q from (a) using a line graph. (total = 7 marks) You are considering purchasing a $10,000 bond on January 14, 2020. The bond matures on July 14, 2021. The bond pays semi-annual coupons at i (2) = 8%. Assuming you require a yield rate of i (2) = 6%, (a) Calculate the values of P, I (= k Fr), and Qevery 10 days, starting on January 14, 2020 and going until July 14, 2021. (Make sure you calculate the values on July 14/20, January 14/21 and July 14/21 in addition to the values every 10 days). (b) Graph the values of P and Q from (a) using a line graph. (total = 7 marks)
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Investment Analysis and Portfolio Management
ISBN: 978-1305262997
11th Edition
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
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