Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency 2 Tax Rate 20% Trade Info: Settlement Date April 25, 2022 Face Amount 30,000,000.00 Assuming this bond is traded in a 20% TAX

Bond Info: Coupon Rate 11.875% Quoted Yield 3.000% Maturity Date May 29, 2023 Frequency 2 Tax Rate 20% Trade Info: Settlement Date April 25, 2022 Face Amount 30,000,000.00 Assuming this bond is traded in a 20% TAX

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 20P

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Question

Given:
Bond Info:
Coupon Rate
Quoted Yield
11.875%
3.000%
Maturity Date
Frequency
Tax Rate
May 29, 2023
2
20%
Trade Info:
Settlement Date April 25, 2022
Face Amount
30,000,000.00
Assuming this bond is traded in a 20% TAX
environment, how much is the coupon per coupon
payment date?
) 1,781.250.00
1,425,000.00
1,400,000.00

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