Question
Levi Strauss & Company has an outstanding B-rated bond that has a coupon rate of 12.25%, a face value of $1000 and is currently priced
Levi Strauss & Company has an outstanding B-rated bond that has a coupon rate of 12.25%, a face value of $1000 and is currently priced at $1117.50. If this bond pays interest semi-annually and matures in 4 years,
- what is its yield to maturity (YTM)?
- Is this bond sold at a premium? Explain.
- What is its current yield?
- What would happen to the price of this bond if the real interest rate increases?
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Financial Markets And Institutions A Modern Perspective
Authors: Anthony Saunders, Marcia Millon Cornett, Marcia Cornett
2nd Edition
007294109X, 978-0072941098
