Expropriation of foreign investments is common practice

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1. A 6.1% coupon bearing bond pays interest semi-annually and has a maturity of 17 years. If the annual yield to maturity is 9.3%, what is the current price of this bond? (Answer to the nearest penny.)

2. A 6.1% coupon bearing bond pays interest semi-annually and has a maturity of 19 years. If the current price of the bond is $953.86, what is the yield to maturity of this bond? (Answer to the nearest tenth of a percent, e.g. 12.34%)

3. In some countries, expropriation(seizure) of foreign investments is a common practice. If you were considering an investment in on of these countries, would the use of payback criterion seem more reasonable than it otherwise might? Why or why not?

Reference no: EM131865316

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