Question
I need to show work, and mainly understand what I'm doing 1) Harrison Co. issued 15-year bonds five years ago at a coupon rate of
I need to show work, and mainly understand what I'm doing
1) Harrison Co. issued 15-year bonds five years ago at a coupon rate of 6 percent. The bonds make semiannual payments. If the YTM on these bonds is 5 percent, what is the current dollar price assuming a $1,000 par value? A. $ 750.76 B. $ 845.56 C. $ 1077.95 D. $ 451.66
2) The Timberlake-Jackson Wardrobe Co. has 5 percent coupon bonds on the market with 7 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $990.00, what is the YTM? A. 5.17% B. 4.88% C. 5.00% D. 5.71%
3) Stein Co. issued 10-year bonds two years ago at a coupon rate of 5 percent. The bonds make semiannual payments. If these bonds currently sell for 90 percent of par value, what is the YTM? A. 3.32% B. 6.63% C. 3.18% D. 6.36%
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