7.5b The following shows the information of a bond: Type of Bond Non-callable municipal bond Issue Date 20-Jun-11 Maturity Date 20-Jun-21 Face Value 100.00 Redemption Value 100.00 Coupon Rate 8% payable semi-annual 7.5b Assume that the coupon dates of the bond are June 20 and December 20 ofeach year. Isaac bought the bond on the issue date at a price of $89. Slightlyover 4 years on August 5, 2015 Simon purchased the bond from Isaac at apurchase (dirty) price of $93.70. Find (b) the realized yield (internal rate of return) to Isaac on sale of the bond,
7.5b The following shows the information of a bond: Type of Bond Non-callable municipal bond Issue Date 20-Jun-11 Maturity Date 20-Jun-21 Face Value 100.00 Redemption Value 100.00 Coupon Rate 8% payable semi-annual 7.5b Assume that the coupon dates of the bond are June 20 and December 20 ofeach year. Isaac bought the bond on the issue date at a price of $89. Slightlyover 4 years on August 5, 2015 Simon purchased the bond from Isaac at apurchase (dirty) price of $93.70. Find (b) the realized yield (internal rate of return) to Isaac on sale of the bond,
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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7.5b The following shows the information of a bond:
Type of Bond | Non-callable municipal bond |
Issue Date | 20-Jun-11 |
Maturity Date | 20-Jun-21 |
Face Value | 100.00 |
Redemption Value | 100.00 |
Coupon Rate | 8% payable semi-annual |
7.5b Assume that the coupon dates of the bond are June 20 and December 20 ofeach year. Isaac bought the bond on the issue date at a price of $89. Slightlyover 4 years on August 5, 2015 Simon purchased the bond from Isaac at apurchase (dirty) price of $93.70. Find (b) the realized yield (
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