Tuesday, 21 April 2015

Show the cash flows for the following four bonds, each of which has a par value of $1000 and pays interest annually.

Show the cash flows for the following four bonds, each of which has a par value of $1000 and pays interest annually.


Bond………Coupon Rate (%)……….Number of Years to Maturity………..Price

W……………………7…………………………………….5………………………………$884.20

X…………………….8…………………………………….7………………………………$948.90

Y…………………….9…………………………………….4………………………………$967.70

Z…………………….0…………………………………….10…………………………….$456.39


b) Calculate the yield to maturity for the four bonds



Show the cash flows for the following four bonds, each of which has a par value of $1000 and pays interest annually.

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