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If you bought one of these bonds today, what is your expected rate of return? Find the realized rate of return. Select Paragraph Styles Editing

If you bought one of these bonds today, what is your expected rate of return? Find the realized rate of return.

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Select Paragraph Styles Editing Pharoah Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 10.785 percent and a yield to maturity of 9.2 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is correct. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ 1138.16 Your answer is correct. If the bonds can be called in five years at a premium of 10.0 percent over par value, what is the investor's realized yield? (Round answer to 3 decimal places, e.g. 15.255%) Realized yield 8.970 % eTextbook and Media Assistance Used Attempts: unlimited Problem 8.30(c) Your answer is incorrect. If you bought one of these bonds today, what is your expected rate of return? (Round answer to 2 decimal places, e.g. 15.25%.) Realized rate of return %

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