Question
Bourdon Software has 6.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual coupon payments and current sell for
Bourdon Software has 6.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual coupon payments and current sell for 106.8 percent of their standard par value.
a) What is the Current Yield on these bonds?
b) What is the YTM on these bonds?
c) What is the Effective Annual Yield on these bonds?
(In excel, fill out the following sections to in the Input Area, Output area will automatically be filled using premade formulas)
| Settlement date (MM/DD/YYYY) | |||
| Maturity date (MM/DD/YYYY) | |||
| Annual coupon rate (%) | |||
| Coupons per year (# per year) | |||
| Face value (% of par) | |||
| Bond price (% of par) | |||
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Emotions In Finance Booms Busts And Uncertainty
Authors: Jocelyn Pixley
2nd Edition
1107633370, 978-1107633377
