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foula
Sep 24, 2008, 07:03 PM
COnsider the Allied Signal Corporation zero coupon money multiplier notes
Of 2008. The bonds were issued on July 1, 1990, for $100. Interest is paid every
July 1 and the bond matures on July 1, 2008. Determine the yield to maturity if
The bonds are purchased at the:
a. Issue price in 1990
b. Market price as of July 1, 2004, of $750
c. Explain why the returns calculated in (a) and (b) are different

foula
Sep 24, 2008, 07:08 PM
Consider the Allied Signal Corporation zero coupon money multiplier notes
Of 2008. The bonds were issued on July 1, 1990, for $100. Interest is paid every
July 1 and the bond matures on July 1, 2008. Determine the yield to maturity if
The bonds are purchased at the:
a. Issue price in 1990
b. Market price as of July 1, 2004, of $750
c. Explain why the returns calculated in (a) and (b) are different