Assignmen2 1. Table 1 contains information on the following bonds listed in the Annual Report Table1...

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Assignmen2 1. Table 1 contains information on the following bonds listed in the Annual Report Table1 PartialLong-TermDebt Listing for Bank Holiday Coupon Rate Maturity Face Amount $ 48,000,000 $ 100,000,000 4% s 2 5/8' 2017 2027 To begin, assume that it is now January 1, 2013, and that each bond in Table 1 matures on Dec 31 of the year listed. Further, assume that each bond has a $1,000 par value, each had a 30-year maturity Assume that the 4 %% bond is selling for $800.00 and the 2 58 % bond is selling for $1,220.00. a. What is the yield to maturity (YTM) on each bond? b. What is the true YTM on each issue? Assignmen2 1. Table 1 contains information on the following bonds listed in the Annual Report Table1 PartialLong-TermDebt Listing for Bank Holiday Coupon Rate Maturity Face Amount $ 48,000,000 $ 100,000,000 4% s 2 5/8' 2017 2027 To begin, assume that it is now January 1, 2013, and that each bond in Table 1 matures on Dec 31 of the year listed. Further, assume that each bond has a $1,000 par value, each had a 30-year maturity Assume that the 4 %% bond is selling for $800.00 and the 2 58 % bond is selling for $1,220.00. a. What is the yield to maturity (YTM) on each bond? b. What is the true YTM on each issue?

Answer rating: 100% (QA)

1 a YTM on 4 bond Face value 1000 Coupon rate 4 Coupon payment 40 Price 800 Time to maturit... View the full answer