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Pharoah, Inc., has four-year bonds outstanding that pay a coupon rate of 7.10 percent and make coupon payments semiannually. If these bonds are currently selling
Pharoah, Inc., has four-year bonds outstanding that pay a coupon rate of 7.10 percent and make coupon payments semiannually. If these bonds are currently selling at $917.89. What is the yield to maturity that an investor can expect to earn on these bonds? (Round answer to 1 decimal place, e.g. 15.2%.) Yield to maturity What is the effective annual yield? (Round answer to 1 decimal place, e.g. 15.2%.) Effective annual yield Helen Martin is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 8.5 percent. Assume annual coupon payments. What is the current value of this bond? (Round answer to 2 decimal places, e.g. 15.25.) Current value of bond $
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