he market price of TRUST bond is currently $890. Its par value is equa nd it is expected to mature in 4 years. The coupon rate is equal to 4% a ield to maturity is equal to 9% per year. Interest payments are made qu ased on the aforementioned information, answer the following questio - The number of periods, N, is equal to:
he market price of TRUST bond is currently $890. Its par value is equa nd it is expected to mature in 4 years. The coupon rate is equal to 4% a ield to maturity is equal to 9% per year. Interest payments are made qu ased on the aforementioned information, answer the following questio - The number of periods, N, is equal to:
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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plz without explanation its okay help me with all of it plzzzzzz
Transcribed Image Text:The market price of TRUST bond is currently $890. Its par value is equal to $1,000
and it is expected to mature in 4 years. The coupon rate is equal to 4% and the
yield to maturity is equal to 9% per year. Interest payments are made quarterly.
Based on the aforementioned information, answer the following questions:
a. The number of periods, N, is equal to:
N =
Calculation details (recommended):
b. The yield to maturity, r, is equal to: (Report it in percent terms)
r=%
Calculation details (recommended):
c. The coupon payment is equal to:
Coupon payment = $
Calculation details (recommended):
d. Calculate the value of the bond today. Use two decimal points.
VB = $
Calculation details (recommended):
e. Would you buy the bond today?
ONot enough information
ONO
Yes
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