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Three years ago you purchased a 11?% coupon bond that pays semiannual coupon payments for ?$963....

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Finance

Three years ago you purchased a 11?% coupon bond that payssemiannual coupon payments for ?$963. What would be your bondequivalent yield if you sold the bond for current market price of?$1057??

Your bond equivalent? yield, if you sold the bond for currentmarket? price, is ------?%. ?(Round to two decimal? places.)

Answer & Explanation Solved by verified expert
4.5 Ratings (775 Votes)
To calculate BEY we need to find per period yield firstRemember BEY Yield per period number of periods ina yearSince it is a semi annual bond    See Answer
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Three years ago you purchased a 11?% coupon bond that payssemiannual coupon payments for ?$963. What would be your bondequivalent yield if you sold the bond for current market price of?$1057??Your bond equivalent? yield, if you sold the bond for currentmarket? price, is ------?%. ?(Round to two decimal? places.)

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