What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $900, if it pays 8% fixed interest for the duration of the bond? yield = [?] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = 3-2022 International Academy of Science. All Rights Reserved. QL interest paid price paid CATE DELL Enter a W

What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $900, if it pays 8% fixed interest for the duration of the bond? yield = [?] % Give your answer as a percent rounded to the nearest hundredth. Hint: yield = 3-2022 International Academy of Science. All Rights Reserved. QL interest paid price paid CATE DELL Enter a W

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the internet to research the Unitedhealth care group set of bonds issued. Based on the bonds’ current YTM, calculate the average current yield.
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You purchase a 3-year $1000 face value bond that has a coupon rate of 5% while the market interest rate is also 3%. What is the price, current yield and YTM? What is the market interest rate drops to 4% right after you purchase the bond? What is rises to 6%
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