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Question (2): You are supposed to calculate the YTM/YTC for given investment opportunities. Rank them from the best to w
Posted: Tue Nov 16, 2021 7:53 am
by answerhappygod
- Question 2 You Are Supposed To Calculate The Ytm Ytc For Given Investment Opportunities Rank Them From The Best To W 1 (53.96 KiB) Viewed 188 times
Question (2): You are supposed to calculate the YTM/YTC for given investment opportunities. Rank them from the best to worse and explain your reason for that. All the bonds have 15 year- maturity A. Government zero-coupon bonds with face value of $1000 and currently the price is $330.65. B. Peterson's bonds pay the interest annually. The Par value of the bond is $1000, and the coupon rate is 9% and the market price of the bond is $960. C. James rentals have a bond has 9% annual coupon. The current yield of the bond is 8.51%. D. Clark's bond has 10% coupon that is paying semiannually and callable in 5 years at a call price of $1060. A bond sells at a yield to maturity of 9% currently. (Calculate YTC)