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As a bond analyst at Yealed Financial, you have been told that Mozart Inc. has 9 percent coupon bonds on the market with 20 years
As a bond analyst at Yealed Financial, you have been told that Mozart Inc. has 9 percent coupon bonds on the market with 20 years to maturity. The bonds make semiannual payments and currently sell for 107.3 percent of par. |
a. | Compute the current yield on the bonds for Mozart Inc.? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
b. | What is the YTM on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
c. | What is the effective annual yield on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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