What is the value of the bond

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Question 1) FASM Bank has designed a security that will pay a dividend of $10.00 in perpetuity. The dividend will be paid quarterly and the initial dividend will be paid one quarter from today. What is the price of the security if the stated annual interest rate is 6.5 percent, compounded quarterly?

Question 2) A European bond has a par value of 1000 Euros, a coupon rate of 3.9 percent and a yield to maturity of 3.2 percent. The bond has 19 years to maturity. Coupons are made annually. What is the value of the bond?

Question 3) ABC Inc. has 5.0 percent coupon bonds on the market with 9 years to maturity. The bonds make semi-annual payments and currently sell for 110 percent of par. What is the YTM?

Reference no: EM131223855

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