Question
Suppose that you are reviewing a price sheet for bonds and see the following prices (per $100 par value) reported. You observe what seem to
Suppose that you are reviewing a price sheet for bonds and see the following prices (per $100 par value) reported. You observe what seem to be several errors. Without calculating the price of each bond, indicate which bonds seem to be reported incorrectly and briefly explain why.
| Bond | Price | Coupon Rate (%) | Required Yield (%) |
| U | 90 | 6 | 9 |
| V | 96 | 9 | 8 |
| W | 110 | 8 | 6 |
| X | 105 | 0 | 5 |
| Y | 107 | 7 | 9 |
| Z | 100 | 6 | 6 |
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The Wall Street Journal Complete Personal Finance Guidebook
Authors: Jeff D. Opdyke
1st Edition
030733600X, 978-0274804573
