A company's 5-year bonds are yielding 7.09% per year. Treasury bonds with the same maturity are...
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A company's 5-year bonds are yielding 7.09% per year. Treasury bonds with the same maturity are yielding 4.74% per year, and the real risk-free rate (r*) is 2.05%. The average inflation premium and the maturity risk premium are the same for all maturities irrespective of the issuer. If the liquidity premium is 0.78%, what is the default risk premium on the corporate bonds? State your answer as a percentage to two decimal places. Do not include the % symbol. Question 16 Madsen Motors' bonds have 14 years remaining to maturity. Interest is paid annually, they have a$1,000 par value the coupon interest rate is 10.08%, and the yield to maturity is 11.53%. What is the bond's current market price? Question 17 4 pts 4 pts Madison, Inc. has a bond issue currently on the market that is trading for a price of $1,196. The bond has a face value of $1,000 and a coupon rate of 12.84. What is the bond's current yield? State your answer as a percentage to 2 decimal places. Do not include the % symbol. A company's 5-year bonds are yielding 7.09% per year. Treasury bonds with the same maturity are yielding 4.74% per year, and the real risk-free rate (r*) is 2.05%. The average inflation premium and the maturity risk premium are the same for all maturities irrespective of the issuer. If the liquidity premium is 0.78%, what is the default risk premium on the corporate bonds? State your answer as a percentage to two decimal places. Do not include the % symbol. Question 16 Madsen Motors' bonds have 14 years remaining to maturity. Interest is paid annually, they have a$1,000 par value the coupon interest rate is 10.08%, and the yield to maturity is 11.53%. What is the bond's current market price? Question 17 4 pts 4 pts Madison, Inc. has a bond issue currently on the market that is trading for a price of $1,196. The bond has a face value of $1,000 and a coupon rate of 12.84. What is the bond's current yield? State your answer as a percentage to 2 decimal places. Do not include the % symbol.
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