Answer Happy

Posted: **Thu Apr 28, 2022 1:34 pm**

: Super T S A Local Firm You May Know Outstanding Bonds Have A 1 000 Par Value And They Mature In 25 Years Their Nomi 1 (10.84 KiB) Viewed 20 times

: Super T S A Local Firm You May Know Outstanding Bonds Have A 1 000 Par Value And They Mature In 25 Years Their Nomi 2 (8.63 KiB) Viewed 20 times

Super T's (a local firm you may know) outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $875. What is the bond's nominal coupon interest rate?
Super T (a local firm you may know) issued 20-year, noncallable, 7.4% annual coupon bonds at their par value of 51,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?