Question: 3. Lockheed Martin has a bond outstanding with a 5.1% coupon, paid semiannually, $1,000 par value, and matures in 2027. The bond yield to maturity
3. Lockheed Martin has a bond outstanding with a 5.1% coupon, paid semiannually, $1,000 par value, and matures in 2027. The bond yield to maturity is 4.532%. What is the price of the bond? Lockheed also has a bond outstanding with a 5.7% coupon, paid semiannually, $1,000 the par value and matures in 2054. This bonds price is $1,097.08. What is the yield of the bond? 4. Disney has a bond outstanding with a 7.55% coupon, paid semiannually, $1,000 par value, and matures in 2093. The bond is callable in 2026 at a call price of $1,025.70. The bond currently sells for $1,037.18. What are the yield to maturity and the yield to call? Do you think the bond will be called? Explain.
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