Question
-Malko Enterprises' bonds currently sell for $1,240. They have a 6-year maturity, an annual coupon of $50, and a par value of $1,000. What is
-Malko Enterprises' bonds currently sell for $1,240. They have a 6-year maturity, an annual coupon of $50, and a par value of $1,000. What is their current yield?
-Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's nominal yield to call? Do not round your intermediate calculations.
-Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.00%, based on semiannual compounding. What is the bond's price?
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