Question
OBrien Ltd.s outstanding bonds have a $1,000 par value, and they mature in 15 years. Their nominal yield to maturity is 7.00%, they pay interest
OBrien Ltd.s outstanding bonds have a $1,000 par value, and they mature in 15 years. Their nominal yield to maturity is 7.00%, they pay interest semiannually, and they sell at a price of $960. What is the bonds nominal (annual) coupon interest rate?
| A. | 6.10% | |
| B. | 7.00% | |
| C. | 3.28% | |
| D. | 6.57% |
Please show work and how to do it on calculator, thank you!
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Financial Reporting Financial Statement Analysis And Valuation
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
10th Edition
0357722094, 978-0357722091
