1. Industrial Industries' bonds mature 1 5 years from today and have par value of $ 1...

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Question:

1. Industrial Industries' bonds mature

15

years from today and have par value of $

1, 000 .

The bonds have a YTM of

7.95 %

and a coupon rate of

8.85 % .

Assuming the bonds pay interest annually, how much should these bonds sell for?

2. Amalgamated Industries bonds have a face value of $

1, 000

and make interest payments of $

42

every six months. If these bonds currently sell for $

1, 140,

what is the current yield on these bonds?

Related Book For answer-question

Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: Mar 16, 2024 02:06 AM

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1. Industrial Industries' bonds mature 1 5 years from today and have par value of $ 1...

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Foundations Of Finance

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