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Answer the questions based on the following FINRA bond quote (face value=1,000) for Ford Motors, Incorporated (assume coupons are paid on a semi-annual basis, and
Answer the questions based on the following FINRA bond quote (face value=1,000) for Ford Motors, Incorporated (assume coupons are paid on a semi-annual basis, and today is March 28, 2019).
Company- Ford Motors
Coupon- 7.750
Maturity- March 28, 2039
Last Price- 946.3
(a) What is the market interest rate or YTM for this Ford Motors Bond?
(b) What is the effect yield (i.e., EAR)?
Please show ALL work as simple as possible. No excel. Yes BAII will work.
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