Question
The Shield Corporation has BB-rated bonds with a yield to maturity of 6.40% APR. A U.S Treasury, with the same maturity, currently has a yield
The Shield Corporation has BB-rated bonds with a yield to maturity of 6.40% APR. A U.S Treasury, with the same maturity, currently has a yield to maturity of 4.14% APR. Both bonds pay semi-annual coupons at a 6.24% APR and have 5.00 years until maturity. (assume $1,000 face value)
What is the current price of the Shield Corporation bond?
What is the current price of the Treasury bond?
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Real Estate Finance
Authors: John P. Wiedemer
8th Edition
0324142900, 9780324142907
