Question: as part of the previous post, please help question 5,6 and 7 (1) How is the value of a coupon bond calculated? 12) What is
(1) How is the value of a coupon bond calculated? 12) What is the value of a 9-year bond, Tshs 100,000 par value with a 10% annual coupon, if its required rate of return is 9%? (3) What is the value of the bond described in part (2) if it pays interest serfi-annually, other things being equal? 14) What is approximate YTM of a 6-year, Tshs 100,000 par value bond with a 10% annual coupon, if it sells for Tshs 116,000? (5) What is the yield to call (YTC or HPY) of the bond described in part (4) if the bond can be called after 3 years at a premium of Tshs 6,000? (6) What is the difference between interest rate risk and reinvestment risk? (7) What are yield curves and their 4 uses? [5 marks@7.35 marks)
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