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Question

 Jose bought a portfolio of five bonds for $50,000. Each of the

bonds is a par valued 10,000 6% bond with

annual coupons. These

five bonds mature at time t=16 through t=20. Find Jose's APY.

Top Answer

dear student to find annual percentage yield we have to use... View the full answer

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Page :
Date: I
Answer -
Annual percentage yield
= ( 1 4 7 ]
" -1
where
8 = Coupon Rate 6 %%
S
no of year to maturity 16
= ( 1 + 60/ ) 16 - 1
= 1. 0617 - 1
0.0617
11
6.17 /2
or at A 20
= (1+...

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