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1. The bonds issued by Stainless Tubs bear an 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000
1. The bonds issued by Stainless Tubs bear an 6 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $817. What is the yield to maturity? 2. Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 8.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000? 3. Bryceton, Inc. has bonds on the market with 15 years to maturity, a yield-to-maturity of 9.2 percent, and a current price of $842.30. The bonds make semiannual payments. What is the coupon rate? 4. Costco issued annual coupon bonds 4 years ago at par value. On the day of issuance, the bonds had a yield to maturity of 10%, a maturity of 30 years. Today, the bond is selling for $1,200. What is the current yield to maturity on the bond?
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1 To calculate the yield to maturity YTM for the bonds issued by Stainless Tubs Face value of the bond FV 1000 Current Price of the bond 817 Number of ...Get Instant Access to Expert-Tailored Solutions
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