Question
1.Caspian Sea Drinks needs to raise $47.00 million by issuing bonds. It plans to issue a 19.00 year semi-annual pay bond that has a coupon
1.Caspian Sea Drinks needs to raise $47.00 million by issuing bonds. It plans to issue a 19.00 year semi-annual pay bond that has a coupon rate of 5.18%. The yield to maturity on the bond is expected to be 4.73%. How many bonds must Caspian Sea issue? (Note: Your answer may not be a whole number. In reality, a company would not issue part of a bond.)
Answer format: Number: Round to: 0 decimal places.
2.The market price of a semi-annual pay bond is $956.92. It has 16.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the yield to maturity?
Answer format: Percentage Round to: 5 decimal places (Example: 9.24341%, % sign required. Will accept decimal format rounded to 7 decimal places (ex: 0.0924341))
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