Question: Finance Question please answer in detail and step by step. I Will thumbs up! If answered same question please don't answer again. 4. You purchased

Finance Question please answer in detail and step by step. I Will thumbs up! If answered same question please don't answer again.

Finance Question please answer in detail and step by step. I Will

4. You purchased a semi-annual pay zero-coupon bond with a two year final maturity. The yield to maturity that you realized on the purchase is 10%, What price did you pay for the security assuming that the transaction had to be paid for on the same day that you agreed to purchase the bond. (That is called a cash settlement). At the end of one year, you become worried about the issuer's credit quality, so you decide to sell the bond. The market yield that you realized on sale was 15%. What price were you paid for the bond ? Again, assume a cash trade. By holding this bond for one year, how much money did you make. How much of those funds were interest and how much were return of principal upon the sale

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