how to get e)6.25 3) Consider a 30 -year bond with semiannual coupons paid...
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how to get e)6.25
3) Consider a 30 -year bond with semiannual coupons paid at a nominal annual rate of 8%. One and half years after issue (that is, immediately after the third coupon payment is made), you purchase the bond. You do not know the par value or the yield. However, your accountant tells you that you will need to report bond amortization of 11.359 over the next six months and 11.714 over the following six months. Find the yield of the bond at purchase. a) 5.00% b) 5.50% c) 5.75% d) 6.00% e) 6.25% 3) Consider a 30 -year bond with semiannual coupons paid at a nominal annual rate of 8%. One and half years after issue (that is, immediately after the third coupon payment is made), you purchase the bond. You do not know the par value or the yield. However, your accountant tells you that you will need to report bond amortization of 11.359 over the next six months and 11.714 over the following six months. Find the yield of the bond at purchase. a) 5.00% b) 5.50% c) 5.75% d) 6.00% e) 6.25%
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