Five years ago bought 8% coupon bond for $975You sold it today for $1,000. Find ROR if(i) All coupons immediately spent(ii) All coupons reinvested at 1% p.a.(iii) All coupons reinvested at 8.64% p.a.
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Five years ago bought 8% coupon bond for $975
You sold it today for $1,000. Find ROR if
(i) All coupons immediately spent
(ii) All coupons reinvested at 1% p.a.
(iii) All coupons reinvested at 8.64% p.a.
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- Find the total proceeds (in $) from the sale of 20 bonds with a coupon rate of 8.75 and a current price of 96.575. (Round your answer to the nearest cent.) The commission charge is $4.00 per bond. The date of the transaction is 145 days since the last interest payment. 2$ Need Helln? Read It Watch I Master ltKrystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?An investor purchased a bond 45 days ago for $985. He received $15 in interest and sold the bond for $980. What is the holding-period return on his investment? A. 1.92% B. 1.02% C. 0.50% D. 0.01%
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