a. A perpetual bond has Tk. 1,200 face value and provides a 10.5% coupon. If the market price of the bond is Tk. 1,050, what is its yield to maturity?
a. A perpetual bond has Tk. 1,200 face value and provides a 10.5% coupon. If the market price of the bond is Tk. 1,050, what is its yield to maturity?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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4. a. A perpetual bond has Tk. 1,200 face value and provides a 10.5% coupon. If the
market price of the bond is Tk. 1,050, what is its yield to maturity? 03
b. A zero-coupon, Tk. 1000 face-
matures in exactly 10 years. What is the required
c. ABC Company has outstanding, an 10 percent, four year, Tk. 1,000 par value
bond on which interest is paid monthly. If the market rate of return is 15 percent,
what is the intrinsic value of the bond?
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