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need a b c and d Bond prices and yields Assume that the Financial Management Corporation's $1,000-par-value bond has a 6.900% coupon, matures on May
need a b c and d
Bond prices and yields Assume that the Financial Management Corporation's $1,000-par-value bond has a 6.900% coupon, matures on May 15,2027 , has a current price quote of 96.941 and a yield to maturity (YTM) of 8.049%. Given this information, answer the following questions: a. What was the dollar price of the bond? b. What is the bond's current yield? c. Is the bond selling at par, at a discount, or at a premium? Why? d. Compare the bond's current yield calculated in part b to its YTM and explain why they differ. a. The dollar price of the bond is $ (Round to the nearest cent.) b. The bond's current yield is %. (Round to two decimal places.) c. The bond is selling at because its price is the par value. (Select from the drop-down menus.) Bond prices and yields Assume that the Financial Management Corporation's \$1,000-par-value bond has a 6.900% coupon, matures on May 15,2027 , has a current price quote of 96.941 and a yield to maturity (YTM) of 8.049%. Given this information, answer the following questions: a. What was the dollar price of the bond? b. What is the bond's current yield? c. Is the bond selling at par, at a discount, or at a premium? Why? d. Compare the bond's current yield calculated in part b to its YTM and explain why they differ. a. The dollar price of the bond is $. (Round to the nearest cent.) b. The bond's current yield is \%. (Round to two decimal places.) c. The bond is selling at because its price is the par value. (Select from the drop-down menus.) Step by Step Solution
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