Dyl Inc.'s bonds currently sell for $910 and have a par value of $1,000. They pay a $60 annual coupon and have a 20-year
Posted: Sat Nov 27, 2021 5:31 pm
Dyl Inc.'s bonds currently sell for $910 and have a par value of
$1,000. They pay a $60 annual coupon and have a 20-year maturity,
but they can be called in 5 years at $1,110. What is their yield to
maturity (YTM)?
Malko Enterprises' bonds currently sell for $1,410. They have a
6-year maturity, an annual coupon of $50, and a par value of
$1,000. What is their current yield?
Grossnickle Corporation issued 20-year, noncallable, 6.2% annual
coupon bonds at their par value of $1,000 one year ago. Today, the
market interest rate on these bonds is 4.2%. What is the current
price of the bonds, given that they now have 19 years to
maturity?
$1,000. They pay a $60 annual coupon and have a 20-year maturity,
but they can be called in 5 years at $1,110. What is their yield to
maturity (YTM)?
Malko Enterprises' bonds currently sell for $1,410. They have a
6-year maturity, an annual coupon of $50, and a par value of
$1,000. What is their current yield?
Grossnickle Corporation issued 20-year, noncallable, 6.2% annual
coupon bonds at their par value of $1,000 one year ago. Today, the
market interest rate on these bonds is 4.2%. What is the current
price of the bonds, given that they now have 19 years to
maturity?