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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

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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 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 ... blur-text-image

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