Question: please help solve the problem using finnacial calculator. 4) (3 pts) You buy a $1000 face value bond that mature in 3 years, pays a
4) (3 pts) You buy a $1000 face value bond that mature in 3 years, pays a 4.2% annual coupon and is priced at $994. a. What is the Yield to maturity of this bond? rrM= b. What is your realized compound yleid if hold the bond to maturity and you reirvest the coupons at the following rates: Year 1 coupon is re-Invested in a 2 year CD paying 3.2% per year Year 2 coupon is re-invested in a 1 year CD paying 2.926 per year
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