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Assume you have the following corporate bond quote on November 6, 2021: Price Coupon (%) Maturity YTM (%) Current Yield (%) Fitch Ratings Callable? 101.96
- Assume you have the following corporate bond quote on November 6, 2021:
| Price | Coupon (%) | Maturity | YTM (%) | Current Yield (%) | Fitch Ratings | Callable? |
| 101.96 | 5.150 | June 1, 2026 | 4.63 | 4.090 | AA | No |
- Using the information above, what is the price of the bond? (3 points)
- Now assume that you do some additional research before you buy this bond. If other bonds with the same time to maturity and the same credit rating have a 5.24% YTM. What would be the price of the bond if it had a YTM of 5.68%? (6 points)
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
