How many bonds can you purchase after one year

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You have invested $50,000 in the 4-year bonds paying 12% interest annually with a $100 par value and price of 96%. After each year you reinvest coupons in the same bonds.

Question a) How many the 4-year bonds can you purchase?

Question b) Calculate the YTM for the 4-year bond.

Question c) How many bonds can you purchase after 1 year?

Question d) What is the price of the bond after 2 years?

Question e) What is the invested capital after 2 years?

Reference no: EM132545165

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