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1 2 Stark Corporation issued bonds at $1.000 per bond. The bonds had a 35 year life with a coupon rate of 8% paid annually.
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Stark Corporation issued bonds at $1.000 per bond. The bonds had a 35 year life with a coupon rate of 8% paid annually. Assume 10 years later, due to bad publicity, the risk premium for the bonds have caused the risk premium to increase the overall market yields to 13%. The bonds have 25 years remaining until maturity. Compute the new price of the bond. Round to 2 decimal places. $633.50 $686.27 $587.62 $747.35 Tully Corporation bonds have 7 years to maturity. Interest is paid quarterly. The bonds have a $1.000 par value, coupon rate of 8.5% and a price of $1,073.69. Compute the annual yield to maturity. Round to 2 decimal places. 6.67% 6.19% 5.72% 7.15%Step by Step Solution
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