A bond portfolio manager invested in a $100,000 parcel of the 4.00% 15 July 2028 Treasury...
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A bond portfolio manager invested in a $100,000 parcel of the 4.00% 15 July 2028 Treasury bond on 15 July 2018 when the market yield was 3.50% and sold the bonds on 15 January 2021 at 4.20%. Coupons were reinvested at 4.20%. Calculate the: (i) buying and selling prices of the bonds, (ii) the accumulated value of the coupons, and (iii) the investment yield achieved by the manager. A bond portfolio manager invested in a $100,000 parcel of the 4.00% 15 July 2028 Treasury bond on 15 July 2018 when the market yield was 3.50% and sold the bonds on 15 January 2021 at 4.20%. Coupons were reinvested at 4.20%. Calculate the: (i) buying and selling prices of the bonds, (ii) the accumulated value of the coupons, and (iii) the investment yield achieved by the manager.
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Answer rating: 100% (QA)
To ascertain the trading costs of the securities we really want to consider the presumptive worth coupon rate yield and time to development I Purchasing Cost of the Bonds Face Worth of the Bond 100000 ... View the full answer
Related Book For
Principles of Corporate Finance
ISBN: 978-1260013900
13th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
Posted Date:
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