33) You purchased a coupon bond on January 2, 2020 with the following information: Coupon rate:...

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33) You purchased a coupon bond on January 2, 2020 with the following information: Coupon rate:...

33) You purchased a coupon bond on January 2, 2020 with the following information:

Coupon rate: 6.00%

Interest payment: annual

Maturity: 5 years

Par Amount: $10,000

Yield to Maturity: 6.20%

1 – What price did you pay for this bond? Show all calculations.

2 – If you sold the bond exactly two years later at a price of $101, what is your annualized rate of return for the two years, assuming you did not reinvest any coupon payments? You must show your work to receive full credit.

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Answer 1

Answer #1

с D E в 0.06 10000 0.062 600 1 coupon rate 2 maturity 3 par amount 4 yield to maturity 5 coupon value 6 1) 7 price of bond 8

В 0.06 10000 0.062 =B1*B3 1 coupon rate 2 maturity 3 par amount 4 yield to maturity 5 coupon value 6 1) 7 price of bond 8 2)

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Answer 2

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