As an investor, you are considering an investment in the bonds of Tu Apellido Company. The bonds,
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- As an investor, you are considering an investment in the bonds of Tu Apellido Company. The bonds, which pay interest semiannually, will mature in ten years and have a coupon rate of 9.4% on a face value of $1,000. Currently, the bonds sell for $1,125. Using another spreadsheet within your Excel worksheet, calculate the following:
- If your required return is 11.25% for bonds in this risk class, what is the highest price you would be willing to pay?
- What is the current yield on these bonds?
- What is the yield to maturity on these bonds if you buy them at the current price?
Related Book For
Financial Analysis with Microsoft Excel
ISBN: 978-1285432274
7th edition
Authors: Timothy R. Mayes, Todd M. Shank
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