Question
(1a) Seattle seafood company has an issue of 5 years, 9% annual coupon bonds outstanding. The bonds, which were originally issued by 15 years ago
(1a) Seattle seafood company has an issue of 5 years, 9% annual coupon bonds outstanding. The bonds, which were originally issued by 15 years ago have a face value (FV) of $1000, a yield to maturity (YTM) of 12% nad are noncallable. What is the current market price of SSC's bonds? a. $891.86 b. $758.08 c. $981.05 d. 1,114.83 (1b) Are the bonds of seattle company selling at a discount, at par, or at a premium? a. Par b. Premium c. Discount (1c) what is the current yield on seattle seafood company's outstanding bonds? a. 9.17% b. 10.09% c. 8.07% d. 11.87% (1d) What is the expected one year capital gain yield on the bonds of seattle seafood company? a. 1.73% b. 2.25% c. 1.53% d. 1.91%
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