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30 Leonard Cooper is looking to invest in a two-year bond from Big Bang Productions Corporation. The company makes semi-annual coupon payments of $73.00
30 Leonard Cooper is looking to invest in a two-year bond from Big Bang Productions Corporation. The company makes semi-annual coupon payments of $73.00 (every 6 months) with a face value of $1,000. If the market price of the bonds is $1,043.00, what yield to maturity will Leonard earn (express as an EAR)? Submit 2 An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities. He observes the following Rating YTM AAA 4.38% AA 4.60% A 4.75% BBB 4.95% BB 5.15% Exxon Mobil (XON) has debt that is AAA rated. Suppose an investor wants to value Exxon bonds that will mature in 10- years. He sees one Exxon bond that pays a 8.25% annual coupon with a face value of $1,000. Bond prices are often quoted as a percentage of $100 face value increments. How would you quote your results from Part A? (express answer as a percentage, xx.xx%, of par)
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