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1Consider an opportunity to purchase a bond for $825 (present value). If the coupon rate is 6% ($60/year), the face value is $1000 (future value),

Consider an opportunity to purchase a bond for $825 (present value). If the coupon rate is 6% ($60/year), the face value is $1000 (future value), and there are 5 years until maturity, what is the YTM?
1Consider an opportunity to purchase a bond for $825 (present value). If the coupon rate is 6% ($60/year), the face value is $1000 (future value), and there are 5 years until maturity, what is the YTM? ssume my General Electric bond cost me $1000 in 2008 and is now worth $800. If the bond paid a 5% coupon rate ($50/year), what is my total rate of retu 11. Assume you are the owner of 1000 Baltimore City Bonds. Each has a face value (FV) of $1000, paid at maturity. The bonds have a coupon rate of 5%, meaning you will receive $50/year (PMT) each year for each bond. The bonds have 10 years (N) to maturity. What is each bond worth (PV) if the current market rate for similar bonds is 4% (Int) now assume that the Fed raises interest rates and the new market rate of interest is 6%. What is each bond worth now What is the net effect of the Feds change on your total portfolio?
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This question was asked on May 09, 2010.

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