Question
Evergreen Inc. has issued a semi-annual coupon bond. The bond has a $1000 face value, a 10% coupon rate, and matures in 8 years. The
Evergreen Inc. has issued a semi-annual coupon bond. The bond has a $1000 face value, a 10% coupon rate, and matures in 8 years. The current annual yield-to-maturity for all bonds of the company is 7% (note: this is APR).
a) What is the semi-annual coupon amount?
b) What is the price of this bond?
c) What is the current yield of this bond?
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
