What was the holding period yield pa

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Problem 1: Assume Miller ABC company currently has a commercial paper outstanding that matures in 30 days. The face value of the paper is $5,000,000 and it is currently selling for $4,990,000. What is the yield to maturity p.a. of this paper?

Problem 2: Assume ABC company has issued a bond with a face value of $1000 and a term to maturity of 5 years. The coupon rate of this bond is 8% p.a. and the coupons are paid semi-annually. If your required rate of return on this bond is 8.5% p.a., without calculation briefly explain if the price you are willing to pay for this bond would be higher, lower or the same as the face value

Problem 3: Assume an investor bought the bond at the face value. After holding it for 2 years, he was able to sell it for $1100. What was his holding period yield p.a

Reference no: EM132904164

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