joe\'s company\'s bonds have 10 years remaining to maturity. Interest is paid an
ID: 2703889 • Letter: J
Question
joe's company's bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1000 par value, and the cooupon interest rate is 6%. the bonds have a yield to maturity of 9%. What is the current price of the bond?
jane's company's bonds have 5 years remaining to maturity. Interest is paid annually the bonds have a $1000 par value and coupon interest rate of 7%. The bond s have a market price of $850. What should be the yield to maturity of these bonds?
Show calculations pls.
Explanation / Answer
current price of the bond=$807.47
yield to maturity of these bonds=11.07%
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