bond lace ue of 1,000,000. The bond can be redeemed, at the option of e corporation, on any coupon date in 2016 or 2017 at par, on my coupon date in 2018 through 2020 for amount 1,200,000, or any coupon date in 2021 through June 15, 2023 at redemption ount 1,300,000. Find the price to yield a minimum nominal annual rate of (i) 10% and (ii) 6 %%. Find the minimum nominal annual yield if the bond is bought for (i) 800,000, (ii) 1,000,000, or (iii) 1,200,000.
bond lace ue of 1,000,000. The bond can be redeemed, at the option of e corporation, on any coupon date in 2016 or 2017 at par, on my coupon date in 2018 through 2020 for amount 1,200,000, or any coupon date in 2021 through June 15, 2023 at redemption ount 1,300,000. Find the price to yield a minimum nominal annual rate of (i) 10% and (ii) 6 %%. Find the minimum nominal annual yield if the bond is bought for (i) 800,000, (ii) 1,000,000, or (iii) 1,200,000.
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 6P
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