The Green Cable Corporation issued a new series of bonds on January 1, 2010 The bonds were sold at par ($ 1,000), have a 12 coupon rate, and mature in 30 years on December 31, 2039 Coupon interest payments are made semiannually (on June 30 and December 31) (a) What was the yield to maturity (YTM) o...

Given Par value 1000 coupon rate 12 paid as 60 semiannually ...

The Green Cable Corporation issued a new series of bonds on January 1, 2010. The bonds were

Question:

The Green Cable issued a new series of bonds on January 1, 2010. The bonds were sold at par ($ 1,000), have a 12% rate, and mature in 30 years on December 31, 2039. interest payments are made semiannually (on June 30 and December 31).
(a) What was the yield to (YTM) of the bond on January 1, 2010?
(b) Assuming that interest rates had fallen to 9%, what was the price of the bond on January 1, 2015 (five years later)?
(c) On July 1, 2015, the bonds sold for $922.38. What was the YTM at that date? What was the current yield at that date? Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...