EBK PERSONAL FINANCE
7th Edition
ISBN: 8220100659713
Author: KEOWN
Publisher: PEARSON
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Chapter 13, Problem 10DC2
Summary Introduction
Case summary:
J has a portfolio that she inherited 6 months ago. She does not much about investing and nothing about bonds specifically. She prepared chart and know that she owns bond ranging for a period of 3 to 20 years. The chart contains information regarding company’s name, rating, years to maturity and current yield.
Characters in the case:
J.
Adequate information:
| Name of Company | Rating of SP | Years to maturity | Current yield |
| A Company | AAA | 10 | 4.75% |
| X Company | AA | 3 | 3.17% |
| IL Company | A | 7 | 6.11% |
| M Company | BBB | 5 | 4.40% |
| SI Company | B | 2 | 6.67% |
| L Company | CCC | 3 | 25.97% |
| B Company | CC | 4 | 10.19% |
Table (1)
To calculate:
Yield to maturity.
Given information:
Annual return is $30.
Par value is $1,000.
Current market price is $945.
Number of years to maturity is 3.
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Chapter 13 Solutions
EBK PERSONAL FINANCE
Ch. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - Prob. 6PACh. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PA
Ch. 13 - Prob. 1DC1Ch. 13 - Prob. 2DC1Ch. 13 - Prob. 3DC1Ch. 13 - Prob. 4DC1Ch. 13 - Prob. 5DC1Ch. 13 - Prob. 6DC1Ch. 13 - Prob. 7DC1Ch. 13 - Prob. 1DC2Ch. 13 - Prob. 2DC2Ch. 13 - Prob. 3DC2Ch. 13 - Prob. 4DC2Ch. 13 - Prob. 5DC2Ch. 13 - Prob. 6DC2Ch. 13 - Prob. 7DC2Ch. 13 - About 6 months ago, Jinnie inherited a portfolio...Ch. 13 - Prob. 9DC2Ch. 13 - Prob. 10DC2
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