A Microhard Corp. bond carries an 8% coupon, paid semiannually. The par value is $1,000, and the
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A Microhard Corp. bond carries an 8% coupon, paid semiannually. The par value is $1,000, and the bond matures in 6 years. If the bond currently sells for $911.37, what is its yield to maturity? What is the effective annual yield?
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For 
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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