Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bonds issued by Oxygen Optimization were priced at 889.1 dollars 6 months ago. The bonds pay semi-annual coupons, have a coupon rate of 7.24 percent,

image text in transcribed

Bonds issued by Oxygen Optimization were priced at 889.1 dollars 6 months ago. The bonds pay semi-annual coupons, have a coupon rate of 7.24 percent, just made a coupon payment, and have a face value of 1,000 dollars. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -4.02 percent, then what is the current yield of the bonds today? Answer as a rate in decimal format so that 12.34% would be entered as. 1234 and 0.98% would be entered as 0098

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Pairs Trading

Authors: Douglas S. Ehrman

1st Edition

0471727075, 9780471727071

More Books

Students also viewed these Finance questions