2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The...

Question

Question

Answer 1

Answer #1

2)

a)

А. 5 6 7 8 1,000 4.375% 2 21.88 853.75 $ A Face value (FV) B Coupon rate c Number of compounding periods per year AxB:C Inter

b)

2 1,000 4.375% 21 4 5 6 A Call price (Here it is FV) A Coupon rate B Number of compounding periods per year $1000xA:B Interes

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Answer 2

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