Allie9937 Allie9937

30-09-2022
Business

Answered

Six years ago the templeton company issued 21-year bonds with an 13% annual coupon rate at their $1,000 par value. The bonds had an 8% call premium, with 5 years of call protection. Today templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places. % why the investor should or should not be happy that templeton called them. Since the bonds have been called, interest rates must have risen sufficiently such that the ytc is greater than the ytm. If investors wish to reinvest their interest receipts, they can now do so at higher interest rates. True or false?.

Answer :

Other Questions

Which statement is true about an annual percentage rate? Answer choices: It is reduced every time you make a payment, It is of little interest to the average bo

To truly liberate the slaves and give them a fresh economic start by giving them land the government would have been required to do what? why were the politicia

One-year treasury bills currently earn 1. 45 percent. You expect that one year from now, 1-year treasury bill rates will increase to 1. 65 percent. If the unbia

One-year treasury bills currently earn 1. 45 percent. You expect that one year from now, 1-year treasury bill rates will increase to 1. 65 percent. If the unbia

In what way is a debit card similar to a check? a. you must always provide a signature to use either. b. both always take a few days to clear, so there is some

The two caveats of the sullivan principles are first, a company should not obey the apartheid laws in its own south african operations and second, a company sho

The two caveats of the sullivan principles are first, a company should not obey the apartheid laws in its own south african operations and second, a company sho

The two caveats of the sullivan principles are first, a company should not obey the apartheid laws in its own south african operations and second, a company sho

The two caveats of the sullivan principles are first, a company should not obey the apartheid laws in its own south african operations and second, a company sho

What is the molecular weight of the product of the reaction between anthracene and maleic anhydride given that diels-alder reactions have 100% atom economy? ans