Provide the total amount in the account per bond at maturity

Reference no: EM132177249

Question - A bond's coupon is 4%, YTM 6%, Reinvestment rate RR 3%, 6 years semiannual, callable at 101 in 2 years. The price of the bond is $90.05. Provide the total amount in the account per bond at maturity. The total number of bonds to fund a $20MM liability and the shortage. Deficit if the RR is only 2%.

Reference no: EM132177249

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