1 a bond is selling for a dollar price of 97635 if this, Ask an Expert

Finance

1. A bond is selling for a dollar price of 97.635. If this bond has an original maturity of 10 years, has been in the market for 18 months and has a coupon of 4.50%, what is the current required return?

2. If the bond in #8 were to remain in the market for another 18 months and rates on similar securities fell by 200 basis points, what would be the bond's new price?

(Please show the formulas that you used,)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92343940

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