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Author Question: ABC Inc. issued at par value a 15-year, 7% semiannual coupon bond with a par value of $1,000. At the ... (Read 57 times)

poopoo

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on: Aug 7, 2023

Question 1

A zero coupon bond with a nominal $1,000 face value has 18 years to maturity and is issued with a price of $302.50. What is the implicit interest you earn on the bond in the first year of the bond’s life, keeping all other factors constant?

◦

$68.68


◦

$60.05


◦

$20.78


◦

$17.54



Question 2

ABC Inc. issued at par value a 15-year, 7% semiannual coupon bond with a par value of $1,000. At the end of 3 years the market interest increases to 9%. One year later, the market interest is 10%. If an investor purchases the bond at the end of year 3 and sells it 1 year later, how much is the capital gain or loss?

◦

–$49.00


◦

–$50.31


◦

–$52.50


◦

–$55.60

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by poopoo on Aug 7, 2023

Karla347

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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poopoo

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

shewald78

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Reply 3 on: Yesterday
Excellent

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