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Preston Corporation has a bond outstanding with a $70 annual interest with a semiannual coupon payment, a market price of $1,068, and a maturity date
Preston Corporation has a bond outstanding with a $70 annual interest with a semiannual coupon payment, a market price of $1,068, and a maturity date in 7 years. Assume the par value of the bonds is $1,000.
Find the following: Use Appendix B and Appendix C. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
a. The coupon rate (nominal yield). | % |
b. The current yield. | % |
c. The yield to maturity. | % |
d. The yield an investor would realize if coupon payments were reinvested at 9 percent. | % |
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