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Zhen Computer Co. has an outstanding issue of bonds with a par value of $1,000 and a 12% coupon rate (paid semi-annually). The bond was
Zhen Computer Co. has an outstanding issue of bonds with a par value of $1,000 and a 12% coupon rate (paid semi-annually). The bond was issued 25 years ago and has 5 years to maturity. What is the value of the bond assuming a market rate of 10 percent? *Note: Interest rate, coupon payment, and number of periods need to be adjusted to semi- annual. A bond will sell at a rate of return, at a return, and at when the stated rate of interest exceeds the required when the stated rate of interest is less than the required when the stated rate of interest is equal to the required return. What is the approximate yield to maturity (YTM) for a $1,000 par value bond selling for $1,120 that matures in 6 years with a 12% annual coupon rate (paid semi-annually)? *Note: Coupon payment and number of periods need to be adjusted to semi-annual. Your answer is a semi-annual rate and should be adjusted to an annual rate
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