Calculate the yield on these bonds

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Reference no: EM132036682

As part of a capital raising exercise, Immaturity Inc. sold 20-year, 6% semi-annual coupon bonds with a face value of $1,000 at a discounted price of $950 each. a) Calculate the yield on these bonds b) Suppose an investor that buys these bonds reinvests the coupon payments received. How much in total would the investor have at maturity if he reinvested his received coupon at: (i) 4.30%, compounded semi-annually?

Reference no: EM132036682

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