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Bought Mar-02
Rate 4% semiannually
4 FV 1000
Maturity 20 years
Equal annual amortization 50
Yr 1 Yr 2
Principal 1000 950
Coupon 40 38
5 FV 1000 Jan-17
Callable at Reciept
a 103 Jan-19 1030
b 102 Jan-20 1020
c 101 Jan-21 1010
d 100 Jan-22 1000
e IBM will likely call the bond after 2022, so that it doesn't have to pay
b Yes
s given Default
(Self Explanatory)
120
=(120/365)*(4%) 1.32%
qually over 20 years, which means every year you get back (1000/20) = 50 of you principal back
if redeemed, you will get 103% of your face value which is 103%*1000 = 1030. (Interest calculations were to be
cipal back