Question
Madison Inc. just issued bonds with a par value of $1,000, an annual coupon rate of 2.5%, coupons paid semiannually , and a maturity of
Madison Inc. just issued bonds with a par value of $1,000, an annual coupon rate of 2.5%, coupons paid semiannually, and a maturity of 7 years? The bonds have a yield to maturity of 5.3%.
What is the current yield for these bonds for the current year?
Enter your answer as a number with a leading zero and 4 decimal places of precision.
ds for the current year?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
