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please write it out and show your work:) thank you!! Kramer Enterprises issued 25 year bonds 7 years ago with a coupon rate of 8.2%.
please write it out and show your work:) thank you!!
Kramer Enterprises issued 25 year bonds 7 years ago with a coupon rate of 8.2%. Currently, the bonds sell at a price of $925. 1. Are these bonds discount, par value, or premium bonds? 2. Assuming semi-annual coupon payments, what is this bond's yield to maturity (YTM)? 3. If the YTM were to increase by one percentage point, what would you expect to happen to the price of the bond? 4. One year later the YTM increases by 1%, by what percentage would the price of the bond change as a result of this 1% increase in the YTM? Edit View Insert Format Tools Table 12pt Paragraph B IU A 2 T Step by Step Solution
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