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You are considering buying the bonds of ABC Corp. They have a $1000 Par Value an 8% Coupon and have 3 years remaining until maturity.
You are considering buying the bonds of ABC Corp. They have a $1000 Par Value an 8% Coupon and have 3 years remaining until maturity. Coupon payments are made semi-annually. The bonds are rated BB and other BB bonds of similar maturities are currently priced to yield 4%. What is the current yield of the bonds given the price level you believe the bonds should trade at?
- 6.45%
- 7.19%
- 8.00%
- 9.23%
- 9.79%
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