Quiz 11 2010

Quiz 11 2010 - B) What is the bond equivalent yield at the...

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DePaul University Name______________________________ Winter Quarter, 2010 FINANCE 330 INVESTMENT ANALYSIS QUIZ 11 You buy a 30-year 7.5% semiannual coupon bond for $975 and plan to hold it for 20 years. You forecast the yield- to-maturity in 20 years will be 8% and that the reinvestment rate on the coupons will be 6.5%. A) What is the current yield at the time of purchase?
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Unformatted text preview: B) What is the bond equivalent yield at the time of purchase? C) What is the effective annual yield at the time of purchase? D) What is the yield to maturity at the time of purchase? E) What is the expected annualized compound yield over the life of the investment? (10 points)...
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This note was uploaded on 09/26/2011 for the course FIN 334 taught by Professor Fin334 during the Winter '10 term at Ill. Chicago.

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