A bond with a 3 percent quarterly coupon rate has a yield


1. A bond with a 3 percent quarterly coupon rate has a yield to maturity of 4 percent. The bond has a par value of $1,000 and matures in 20 years. Based on this information, what is a fair price of this bond?

2. The exchange rate is 1.1491 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 9,899 Swiss francs?

3. You are planning to visit Japan in December. You estimate the cost of your trip to be $904. How many yen do you need to buy if the exchange rate is 1$ = 145.88 yen?

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Financial Management: A bond with a 3 percent quarterly coupon rate has a yield
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