Coupon bond outstanding that pays semiannual interest

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1. The company has a 6% coupon bond outstanding that pays semiannual interest. What is the semiannual interest payment on a $1000 face value bond?

2. Consider a 5% coupon, 10-year bond that pays interest annually, and its current price is $950. The par value is $1000. What is the yield to maturity?

3. A call with a strike price of $60 costs $6. A put with the same strike price and expiration date costs $4. A trader creates a straddle by buying a call option and a put option, and holds it until maturity. Plot the detailed profit graph of the trader as a function of the stock price at expiration.

Reference no: EM131962538

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