- Problem 3 12 Points 3 Points For Each Correct Answer A 12 Year 12 Monthly Coupon Bond With 1 000 Par Value May Be 1 (33.18 KiB) Viewed 42 times
Problem 3- 12 points @3 points for each correct answer. A 12 year, 12% monthly coupon bond with $1,000 par value may be
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Problem 3- 12 points @3 points for each correct answer. A 12 year, 12% monthly coupon bond with $1,000 par value may be
Problem 3- 12 points @3 points for each correct answer. A 12 year, 12% monthly coupon bond with $1,000 par value may be called in 2 years with a call premium of 12%. The bonds sells for $1,200 (assume the bond has just been issues). Part a) What is the bond's YTM? Part b) What is the bond's current yield? Part c) What is the bond's CGY? Part d) What is the bond's YTC? N for YTM calculation. N for YTC calculation Par value FV for callable price or call price monthly Coupon Bond price or PV part a) part b) part c) part d)