A bond with a current yield of 7.41 percent is quoted at 104.122. What is the...

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Answer 1

Answer #1

(1) Coupen rate% = % current yield * current bond price

= 7.41%. *104.122

= 7.72%

(2)

X Bona Price = cх [1 - (1+r)-n] + F r Citrin c = Coupon Payment nino. of Perionds till maturity r = yield to maturity F = F

(3) bond price =coupen rate* face value/current yield

= 0.0562*1000/0.0503

= $1117.30

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Answer 2

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