1. A bond offers an annual coupon rate of 4%, with interest paid semiannually. The...
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Accounting
1. A bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in two years. At a market discount rate of 5%, the price of this bond per 100 of par value is closest to:
2. A bond offers an annual coupon rate of 4%, with interest paid semiannually. The bond matures in seven years. At a market discount rate of 7%, the price of this bond per 100 of par value is closest to
3.
Current rates | |||
One year | f1 | 2% | |
Two year | f2 | 2.25% | |
Three year | f3 | 2.35% | |
Four year | f4 | 2.40% | |
Five year | f5 | 2.50% | |
3 year rate two year from today? |
4. A 7%, 4 year, semiannual pay bond trading at 105.37% of par. The bond is callable at $102 in two years. What is the bonds Yield to call?
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