What are the bank discount yield and bond equivalent yield

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1. If a bond with a FV of $1000 has 10 years until maturity carries a coupon rate of 8.8%, and sells for $1,120,,interest is paid annually. I the bond has a yield to maturity of 9.2% one year from now, what will be the annual rate of return on the bond?

2. The exchange rate is 0.9458 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 1 Swiss franc?

3. A U.S. Treasury bill with 128 days to maturity is quoted at 98.63. What are the bank discount yield, bond equivalent yield, and effective annual return for this bond?

Reference no: EM131987415

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