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Preston Corporation has a bond outstanding with a $90 annual interest with a semiannual coupon payment, a market price of $1,072, and a maturity date
Preston Corporation has a bond outstanding with a $90 annual interest with a semiannual coupon payment, a market price of $1,072, and a maturity date in 8 years. Assume the par value of the bonds is $1,000 Find the following: (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.) a. The coupon rate b. The current yield c. The yield to maturity d. The yield an investor would realize if coupon payments were reinvested at 11 percent
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