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Suppose that a bond is purchased between coupon periods. The days between the settlement date and the next coupon period are 100. There are 182 days in the coupon period. Suppose that the bond purchased has a coupon rate of 7.2% and there are 8 semiannual coupon payments remaining. The par value of the bond is $100.
a. What is the full price for this bond if a 5.8% annual discount rate is used?
b. What is the accrued interest for this bond?
c. What is the clean price of the bond?
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What rate of interest was paid, based on the pesos received and paid by the treasurer?- Show how your result illustrates the interest rate parity theorem.
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Consider a 10% coupon issue that matures in 10 years and 2 months, interest is paid semiannually and investors require a quoted 8% yield-to-maturity. Suppose that as of the next interest date, the bond will have 10 years of life remaining. What shoul..
You are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively.- What is the present value of these cash flows, given a 9 percent discount rate?
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Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has six years to maturity, whereas Bond Dave has 17 years to maturity
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