Question
A 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.6041%. (1.) What
A 6% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 6.6041%.
(1.) What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent.
(2.) What is the bond's YTM? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places.
(3.) Nesmith Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 15 years to maturity, and an 8% YTM. What is the bond's price? Round your answer to the nearest cent.
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