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Complex finance problems using Excel. Compost International issued $1000 bonds on May 12, 2000 in order to...

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Finance

Complex finance problems using Excel.

  1. Compost International issued $1000 bonds on May 12, 2000 inorder to finance world-wide expansion. The bonds have a coupon rateof 8.4% with payments on a semi-annual basis (November 12, May 12)and mature on May 12, 2020. You purchased one of Compost’s $1000bond on June 25, 2004 and plan to hold the bond to maturity. Thebond has a list price of $1090 (not including accruedinterest).

Compute the semi-annual couponpayment, the accrued interest, the invoice price of the bond, andthe Yield to Maturity (YTM) of your bond.

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1 Semiannual coupon payment annual coupon ratepar value2 8410002    See Answer
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Complex finance problems using Excel.Compost International issued $1000 bonds on May 12, 2000 inorder to finance world-wide expansion. The bonds have a coupon rateof 8.4% with payments on a semi-annual basis (November 12, May 12)and mature on May 12, 2020. You purchased one of Compost’s $1000bond on June 25, 2004 and plan to hold the bond to maturity. Thebond has a list price of $1090 (not including accruedinterest).Compute the semi-annual couponpayment, the accrued interest, the invoice price of the bond, andthe Yield to Maturity (YTM) of your bond.

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