Consider the following information: You are an investor who wants to buy a bond and you...
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Consider the following information: You are an investor who wants to buy a bond and you want to get an 8.75% return. Your broker finds a bond for you with the following details. PAR value $2,000, coupon payments are $35/quarter. Today's price for this bond is $1,654.29. Time to maturity is 15 years. N= IY= CPT PV= PMT= FV= a. What is the Current Yield? b. What is the Coupon Rate? c. What is the Yield To Maturity? d. Should you buy this bond? Why or why not? XXX Xxx Consider the following information: You are an investor who wants to buy a bond and you want to get an 8.75% return. Your broker finds a bond for you with the following details. PAR value $2,000, coupon payments are $35/quarter. Today's price for this bond is $1,654.29. Time to maturity is 15 years. N= IY= CPT PV= PMT= FV= a. What is the Current Yield? b. What is the Coupon Rate? c. What is the Yield To Maturity? d. Should you buy this bond? Why or why not? XXX Xxx
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Answer rating: 100% (QA)
a What is the current yield The current yield is the annual income generated by a bond divided by it... View the full answer
Related Book For
Small Business Management Entrepreneurship and Beyond
ISBN: 978-0538453141
5th edition
Authors: Timothy s. Hatten
Posted Date:
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