) Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the market interest rate is 16%. How much will you pay for this bond. If the coupon was to be paid semi- annually will your answer be different.
a) Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the
market interest rate is 16%. How much will you pay for this bond. If the coupon was to be
paid semi- annually will your answer be different.
b) A U.S. investor obtains Ghana cedis when the cedi is worth $.33 and invests in a one-year
investor converts the proceeds from the investment back to dollars at the prevailing spot
rate of $.26. What is the effective yield earned by this foreign investor?
Hai there! Thank you for the question. As per company guidelines expert can answer only one question at a time. Ask remaining question separately.
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Given:
| Particulars | Amount |
| Face value (FV) | 3000 |
| Coupon rate | 12% |
| Years | 4 |
| Yield to maturity | 16% |
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