Chapter 04 - The Bond Page

Chapter 04 - The Bond Page - Spread ($0.1 to $0.15 per...

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697258a13f322f40a8376217c8b3b1e3e2d48da7.xls/The Bond Page 1/1 Acquisition Date 2/20/2002 Bond Coupon Rate Maturity Date 1 5.25% 9/1/2003 103.23 3.06% 5.08% 2 7.50% 12/1/2003 107.18 3.29% 7.00% 3 9.00% 6/1/2025 140.39 5.81% 6.41% 4 5.75% 6/1/2029 100.90 5.68% 5.70% Bid Price - price received by sellers (wholesale price) Asked Price - price paid by buyers (retail price)
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Unformatted text preview: Spread ($0.1 to $0.15 per $1,000 Face Value) - Asked Price minus Bid Price (profit to bond dealer) Current Yield approximates Yield to Maturity extremely well with maturity over 25 years Price (Bid Price) Yield 'to Maturity' (Asked Price) Current Yield (Asked Price)...
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