Question
Z Corporation has a bond outstanding. It has a coupon rate of 8.0 percent and a $1000 par value. The bond has 8 years left
Z Corporation has a bond outstanding. It has a coupon rate of 8.0 percent and a $1000 par value. The bond has 8 years left to maturity but could be called after 4 years for $1000 plus a call premium of $40. The bond is selling for $1016. The yield to call on this bond is?
D Coporation has a bond outstanding with a coupon rate of 9% and a $1000 par value. The bond has 13 years left to maturity. The bond is selling for $1018. What is the yield to maturity?
B Corporation has $1000 par value bonds with 14 years left to maturity, a stated annual coupon rate of 6.8 percent (with annual interest payments). What are these bonds worth today if the required market rate of return is 4.5 percent?
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