1 Preston Corporation has a bond outstanding with a $70 annual interest with a semiannual coupon...
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1 Preston Corporation has a bond outstanding with a $70 annual interest with a semiannual coupon payment, a market price of $1,081, and a maturity date in 5 years. Assume the par value of the bonds is $1,000. Find the following: (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.) a. The coupon rate (nominal yield). b. The current yield. c. The yield to maturity. d. The yield an investor would realize if coupon payments were reinvested at 9 percent. % % % % 1 Preston Corporation has a bond outstanding with a $70 annual interest with a semiannual coupon payment, a market price of $1,081, and a maturity date in 5 years. Assume the par value of the bonds is $1,000. Find the following: (Use a Financial calculator to arrive at the answers. Round the final answers to 2 decimal places.) a. The coupon rate (nominal yield). b. The current yield. c. The yield to maturity. d. The yield an investor would realize if coupon payments were reinvested at 9 percent. % % % %
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