The following shows the information of a bond: Type of Bond Issue Date Maturity Date Face...
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The following shows the information of a bond: Type of Bond Issue Date Maturity Date Face Value Redemption Value Coupon Rate Non-callable municipal bond June 20, 2011 June 20, 2021 $100 $100 8% payable semiannually Assume that the coupon dates of the bond are June 20 and December 20 of each year. Isaac bought the bond on the issue date at a price of $89. Slightly over 4 years on August 5, 2015 Simon purchased the bond from Isaac at a purchase (dirty) price of $93.70. Find (a) the yield to maturity of the bond upon issue, (b) the realized yield (internal rate of return) to Isaac on the sale of the bond, (c) the yield to maturity of Simon's purchase on August 5, 2015. The following shows the information of a bond: Type of Bond Issue Date Maturity Date Face Value Redemption Value Coupon Rate Non-callable municipal bond June 20, 2011 June 20, 2021 $100 $100 8% payable semiannually Assume that the coupon dates of the bond are June 20 and December 20 of each year. Isaac bought the bond on the issue date at a price of $89. Slightly over 4 years on August 5, 2015 Simon purchased the bond from Isaac at a purchase (dirty) price of $93.70. Find (a) the yield to maturity of the bond upon issue, (b) the realized yield (internal rate of return) to Isaac on the sale of the bond, (c) the yield to maturity of Simon's purchase on August 5, 2015.
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Answer rating: 100% (QA)
a Yield to Maturity Upon Issue The yield to maturity upon issue is the rate at which the bond must be sold to generate the same present value as the f... View the full answer
Related Book For
Intermediate Algebra
ISBN: 9780134895987
13th Edition
Authors: Margaret Lial, John Hornsby, Terry McGinnis
Posted Date:
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