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28 Sep 2019
Bond Prices and Yields.Assume that the Financial ManagementCorporation's $1,000 par-value bond has a 6.200% coupon, matures onMay 15, 2020, has a current price quote of 109.501 and a yield tomaturity (YTM) of 5.099%. Given this information answer thefollowing questions:
A. What is the dollar price of this bond ? (rounded to the nearestcent) $
B. What is the bond's current yield? (rounded to the nearest2decimal places) %
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Question #2
Yield to Maturity. The Salem Company bond currently sales for$528.81, has a coupon interest rate of 8%, and a $1,000 par value,pays interest annually, and has 20yrs to maturity. Calculate theYTM % on this bond. Round answer to the nearest 3decimals
Bond Prices and Yields.Assume that the Financial ManagementCorporation's $1,000 par-value bond has a 6.200% coupon, matures onMay 15, 2020, has a current price quote of 109.501 and a yield tomaturity (YTM) of 5.099%. Given this information answer thefollowing questions:
A. What is the dollar price of this bond ? (rounded to the nearestcent) $
B. What is the bond's current yield? (rounded to the nearest2decimal places) %
_____
Question #2
Yield to Maturity. The Salem Company bond currently sales for$528.81, has a coupon interest rate of 8%, and a $1,000 par value,pays interest annually, and has 20yrs to maturity. Calculate theYTM % on this bond. Round answer to the nearest 3decimals
A. What is the dollar price of this bond ? (rounded to the nearestcent) $
B. What is the bond's current yield? (rounded to the nearest2decimal places) %
_____
Question #2
Yield to Maturity. The Salem Company bond currently sales for$528.81, has a coupon interest rate of 8%, and a $1,000 par value,pays interest annually, and has 20yrs to maturity. Calculate theYTM % on this bond. Round answer to the nearest 3decimals
Jarrod RobelLv2
28 Sep 2019
