Question
Hobby Companys bonds have 8 years remaining to maturity. They have a $ 1,000 par value. The coupon interest rate is 8 %. What is
Hobby Companys bonds have 8 years remaining to maturity. They have a $ 1,000 par value. The coupon interest rate is 8 %. What is the most you should pay for the bond if you require a 9% return?
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Cashew Corporation has a five-year bond whose yield to maturity is 6.5%. The bond has no coupon payments. What is the price of this zero coupon bond? (Assume semi-annual compounding)
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A company has outstanding bonds that were issued 20 years ago with a $ 1,000 par value, a 6% semiannual coupon. What is the bonds price if there are 7 years to maturity, and the yield to maturity is 5%?
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Get Rich With Dividends
Authors: Marc Lichtenfeld
3rd Edition
1119985552, 978-1119985556
