Business

Business, 17.10.2019 01:10, Cocco

You have just purchased a municipal bond with a $10,000 par value for $9,500. you purchased it immediately after the previous owner received a semiannual interest payment. the bond rate is 6.6% per year payable semiannually. you plan to hold the bond for 4 years, selling the bond immediately after you receive the interest payment. if your desired nominal yield is 12% per year compounded semiannually, what will be your minimum selling price for the bond? $

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Business, 17.10.2019 05:10, caguil00

Suppose you purchase a ten-year bond with 9% annual coupons. you hold the bond for four years and sell it immediately after receiving the fourth coupon. if the bond’s ytm was 8.66% when you purchased and sold the bond. what cash flows will you pay at the purchase and what cash flows will you receive at the sale (including any coupon received immediately before sale) from you investment in the bond per $100 face value? how much interest income will you earn for holding this bond for four years in total?

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Business, 24.10.2019 04:00, Kelbee781

You have just purchased a municipal bond with a $10,000 par value for $9,500. you purchased it immediately after the previous owner received a semiannual interest payment. the bond rate is 6.6% per year payable semiannually. you plan to hold the bond for 3 years, selling the bond immediately after you receive the interest payment. if your desired nominal yield is 9% per year compounded semiannually, what will be your minimum selling price for the bond?

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Business, 25.10.2019 04:43, nally6636

4. ten bonds are purchased for $9,855.57. they are kept for 5 years and coupon payments are received at the end of each of the 5 years. immediately following the owner’s receipt of the 5th coupon payment, the owner sells each bond for $50 less than its par value. the bond coupon rate is 8%, and the owner’s money yields a 10% annual return. determine the face value of each bond.

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