Question

A 7 - year rs 100 bond of a firm can be sold for a net price of rs . 97-95 and is redeemable at a premium of 5%. the coupon rate of interest is 15%and the tax rate is 55%.​

Answer 1

Answer:

no this is no longer bro

Explanation:

this is no longer bro

Answer 2

Answer:

FaceValue

For simplicity let s say n PV

Coupon Interest Payment Face Value Current Yield

i i i ii

YTM i

5

(B): likewise, 1

$1,000

, ' 1; 1,000

( ) 1,000 0.10 100

1 1 1,000 100 1,000 1,100 1,000 100

1 11 1 1 n n

FaceValue

For simplicity let s say n PV

Coupon Interest Payment Face Value Current Yield

i i i ii



0.1

i

YTM i

(C) Likewise,

$1,000

, ' 1; 1,000

( ) 1,000 0.15 150

1 1 1,000 150 1,000 1,150 1,000 150

1 11 1 1 n n

FaceValue

For simplicity let s say n PV

Coupon Interest Payment Face Value Current Yield

0.15