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Please Help!! Question 3 (10 points) You notice that Pepsi's 5.5s31 bonds closed at 94.5. (Bond prices are expressed as a percentage of par.) The
Please Help!!
Question 3 (10 points) You notice that Pepsi's "5.5s31" bonds closed at 94.5. (Bond prices are expressed as a percentage of par.) The par value is $1,000. If these bonds mature on April 1, 2031, and today is October 2, 2013, what is the effective yield to maturity of these bonds? The bonds pay coupons semiannually. Answer in percent to three decimal places. Do not enter the percent sign. Your Answer: Answer Question 4 (10 points) Keller Corp. has an outstanding issue of $1,000 par value bonds with a 7.00% coupon rate, paid semiannually. The issue matures in 17 years. Bonds of similar risk are currently earning a 6.50% rate of return (annualized nominal yield). Consider why a bond might be earning a yield below the coupon rate. What might have happened? I will ask in class. However, Brightspace really only handles quantitative questions well. So here I have a different question. There is a particular yield known as the "current yield (to be clear, this is not another way of saying today's yield). What is it for this bond? Answer in percent to three decimal places. Do not enter the percent sign. Your Answer: Question 3 (10 points) You notice that Pepsi's "5.5s31" bonds closed at 94.5. (Bond prices are expressed as a percentage of par.) The par value is $1,000. If these bonds mature on April 1, 2031, and today is October 2, 2013, what is the effective yield to maturity of these bonds? The bonds pay coupons semiannually. Answer in percent to three decimal places. Do not enter the percent sign. Your Answer: Answer Question 4 (10 points) Keller Corp. has an outstanding issue of $1,000 par value bonds with a 7.00% coupon rate, paid semiannually. The issue matures in 17 years. Bonds of similar risk are currently earning a 6.50% rate of return (annualized nominal yield). Consider why a bond might be earning a yield below the coupon rate. What might have happened? I will ask in class. However, Brightspace really only handles quantitative questions well. So here I have a different question. There is a particular yield known as the "current yield (to be clear, this is not another way of saying today's yield). What is it for this bond? Answer in percent to three decimal places. Do not enter the percent sign. Your
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