Question: please do all questions and no excel 1. For a certain bond F-C = $25000, Fr = $500 and n 20 (a ten year bond
please do all questions and no excel
1. For a certain bond F-C = $25000, Fr = $500 and n 20 (a ten year bond with semi-annual coupons). Suppose further that the bond is callable after the 16th coupon is paid, but if the bond is redeemed early, the redemption price is $25200 What price guarantees a return of (2) 0.036? 2. What price guarantees a yield of i(2) 0.0442 3, suppose the bond is bought to guarantee a yield of (2) - 0.036 and sold immediately after the 8th coupon is received to an investor who' prices the bond to guarantee a return of 112) 0.038. Find this price. What return did the first investor actually get
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