Question
ABC Corp.'s outstanding bonds have a $1,000 par value and they mature in 5 years.Their yield-to-maturity is 9% based on semi-annual compounding, and the current
ABC Corp.'s outstanding bonds have a $1,000 par value and they mature in 5 years.Their yield-to-maturity is 9% based on semi-annual compounding, and the current market price is $853.61.What is the bond's annual payment?
$26.50
$53.00
25.36
$50.27
What is the bond's current yield?
3.11%
6.22%
3.02%
6.04%
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
