Question
1 a, A $1,000 par value 10-year bond with a 10 percent coupon rate recently sold for $900. The yield to maturity is: b. The
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a, A $1,000 par value 10-year bond with a 10 percent coupon rate recently sold for $900. The yield to maturity is:
b. The interest on corporate bonds in the United States is typically paid:
c. What is the current yield of a 9 year bond issued by Sarah Goldberg, Inc. that pays a coupon rate of 20%per year, has a $1,000 par value, and is currently priced at $1,407? Round youranswer to the nearest whole percent and assume annual coupon paymen ;
d. Stormy, Inc. has issued a 12% coupon bond that is to mature in 9 years. The bond had a$1,000 par value and interest is due to be paid semi-annually. If your required rate of return is 10%, what price would you be willing to pay for the bond?
e. Calculate the value of a bond issued by Tamika, Inc. that is expected to mature in 13 years with a $1,000 face value. The interest coupon rate is 8%, and the required rate of return is 10%. Interest is paid annually.
f. Victoria, Inc. just issued $1,000 par 20-year bonds. The bonds sold for $936 and pay interest annually. Current yield on the bond is 15%. What is the amount of the annual interest payment on the bonds?
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