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Please make sure answers are correct (5) A bond has a 9.6 percent coupon, $1,000 par value, and 10 years until its maturity date. Coupons
Please make sure answers are correct
(5) A bond has a 9.6 percent coupon, $1,000 par value, and 10 years until its maturity date. Coupons are paid semiannually. The bond is now selling at $1,200. What is the current yield? (6) Six years ago, Footnote Inc. (NYSE: FT) issued a 15 -year bond with a $1,000 face value and an 8 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $1,050. If the bond can be called in five years for a redemption price of $1,080, what is the bond's yield to call (YTC)? (5) A bond has a 9.6 percent coupon, $1,000 par value, and 10 years until its maturity date. Coupons are paid semiannually. The bond is now selling at $1,200. What is the current yield? (6) Six years ago, Footnote Inc. (NYSE: FT) issued a 15 -year bond with a $1,000 face value and an 8 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $1,050. If the bond can be called in five years for a redemption price of $1,080, what is the bond's yield to call (YTC)Step by Step Solution
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