Question
Hello can you provide assistance with the following? 1. Abner Corporation's bonds mature in 16 years and pay 8 percent interest annually. If you purchase
Hello can you provide assistance with the following?
1. Abner Corporation's bonds mature in 16 years and pay 8 percent interest annually. If you purchase the bonds for $1,100, what is your yield to maturity?
Your yield to maturity on the Abner bonds is $??? (Round two decimal places)
2. The market price is $700 for a 9-year bond ($1,000 par value) that pays 11 percent annual interest, but makes interest payments on a semiannual basis (5.5 percent semiannually). What is the bond's yield to maturity?
The bond's yield to maturity is %??? (Round two decimal places)
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