) Consider buying a 1000 pbr bond at the market price of 800 pbr. The bond pays dividends semiannually at a rate of 8% per year over 10 years (i.e. The bond matures in 10 years). (a) Calculate the coupon rate? (b) Calculate the dividend amounts /Coupon interest payments. (c) Draw the cash flow diagram for the bond investment. (d) Calculate the effective annual yield.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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) Consider buying a 1000 pbr bond at the market price of 800 pbr. The bond pays
dividends semiannually at a rate of 8% per year over 10 years (i.e. The bond matures in 10 years).
(a) Calculate the coupon rate?
(b) Calculate the dividend amounts /Coupon interest payments.
(c) Draw the cash flow diagram for the bond investment.
(d) Calculate the effective annual yield.

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