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Madison, Inc. has a bond issue currently on the market that is trading for a price of $937.55. The bond has a face value of
Madison, Inc. has a bond issue currently on the market that is trading for a price of $937.55. The bond has a face value of $1,000 and a coupon rate of 8.36. The bond's yield to maturity is 11.46%. What is the bond's current yield for Madison, Inc.? On the other hand, Kennedy Enterprise bonds have 24 years remaining to maturity. Interest is paid annually, they have a $1,000 par value the coupon interest rate is 8.17%, and the yield to maturity is 13.38%. How much should the bonds be selling for in the market?
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