An investor has the choice of purchasing a 19-year annual bond, that has annual coupon payment...
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An investor has the choice of purchasing a 19-year annual bond, that has annual coupon payment of $70, each year plus its par-value in the final year. The current price of the bond is $1,174.11. If the investor, believes they can re-invest the coupon payments at a 6.25% interest rate How much money will the investor have in 19 years? Suppose there o-coupon bond, that has the same yield to maturity, and maturity date as the 19-year bond. How, many zero- coupon bonds Investor need to purchase to have the same total cash flow, as the 19-year coupon paying bond (Assume the investor can buy paral bonds) An investor has the choice of purchasing a 19-year annual bond, that has annual coupon payment of $70, each year plus its par-value in the final year. The current price of the bond is $1,174.11. If the investor, believes they can re-invest the coupon payments at a 6.25% interest rate How much money will the investor have in 19 years? Suppose there o-coupon bond, that has the same yield to maturity, and maturity date as the 19-year bond. How, many zero- coupon bonds Investor need to purchase to have the same total cash flow, as the 19-year coupon paying bond (Assume the investor can buy paral bonds)
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806 Criven Coupon C 70 Interest 2 625 Time n 19 ive EV Fu... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
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