You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had...

You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%.

1)Find the total interest at the end of year 5. Express your answer in dollar and cents.

2)Find the interest-on-interest at the end of year 5. Express your answer in dollar and cents.

3)Find the capital gain at the end of year 5. Express your answer in dollar and cents.

4)Find the total income at the end of year 5. Express your answer in dollar and cents.

5)Find the realized return at the end of year 5. Express your answer as a percentage with 3 digits after the decimal point.

Please show the correct answer and explanation, Thanks!

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Expert Solution

ekkarill92 answered 1 year ago

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