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The Garland Corporation has a bond outstanding with a $80 annual interest with semiannual payment, a market price of $800, and a maturity date in
The Garland Corporation has a bond outstanding with a $80 annual interest with semiannual payment, a market price of $800, and a maturity date in 5 years. Assume the par value of the bonds is $1,000.
Find the following: UseAppendix BandAppendix C.(Do not round your intermediate calculations. Round the final answers to 2 decimal places.)
a. The coupon rate%-?
b. The current yield%-?
c.Calculate the net present value.
Netpresent value$-?
d. The yield an investor would realize if coupon payments were
reinvested at 10 percent (holding period return)%-?
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