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On January 1, 2014 you had the following information from the financial pages of a local daily newspaper: a) What should the price of this

On January 1, 2014 you had the following information from the financial pages of a local daily newspaper:

image text in transcribed

a) What should the price of this bond be?

b) Assume that the bond sells for $850. What then should be the rate of return of promised? What would be the posted yield now?

c) Under what conditions will this promised yield be realized?

Coupon Maturity Price Yield XYZ 6 Dec. 31/2023 8 Coupon Maturity Price Yield XYZ 6 Dec. 31/2023 8

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