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  • BM Sub Bond 8% Ytm

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    Abhishek Krishna
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    The document summarizes the purchase of 10,000 bonds issued at 1.01 per bond for a total of 10,300. The bonds pay interest semi-annually at 8% and will mature after 7 years on May 15, 2016, at which point the full principal of 10,000 will be returned. The net cash flow over the life of the bond is tracked, showing the initial investment of 10,300 and semi-annual interest payments of 400 until final redemption of 10,000 principal and 400 interest on maturity.

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    BM_SUB_BOND_8%_YTM

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    The document summarizes the purchase of 10,000 bonds issued at 1.01 per bond for a total of 10,300. The bonds pay interest semi-annually at 8% and will mature after 7 years on May 15, 2016, at which point the full principal of 10,000 will be returned. The net cash flow over the life of the bond is tracked, showing the initial investment of 10,300 and semi-annual interest payments of 400 until final redemption of 10,000 principal and 400 interest on maturity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    24 views2 pages

    BM Sub Bond 8% Ytm

    Uploaded by

    Abhishek Krishna
    The document summarizes the purchase of 10,000 bonds issued at 1.01 per bond for a total of 10,300. The bonds pay interest semi-annually at 8% and will mature after 7 years on May 15, 2016, at which point the full principal of 10,000 will be returned. The net cash flow over the life of the bond is tracked, showing the initial investment of 10,300 and semi-annual interest payments of 400 until final redemption of 10,000 principal and 400 interest on maturity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 2

    Issue price 1.

    000
    Issue expense 0.010
    Issue price 1.010

    Today's price 1.030


    Bonds purchased 10,000
    Coupon rate 8%

    Interest payment 15 May and 15 Nov each year


    Tenor 7 years Maturity on 15th May 2016

    Aug-10 Nov-10 May-11 Nov-11 May-12

    Amount invested (10,300)

    Dividend income 400 400 400 400

    Redemption income

    Net Cash Flow (10,300) 400 400 400 400

    Yield to Maturity 7.92%


    Nov-12 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16

    400 400 400 400 400 400 400 400

    10,000

    400 400 400 400 400 400 400 10,400

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