Question: ANSWERS TO 7 & 8 needed. will like & comment feedback, thank you 7. Collingwood Homes has a bond issue outstanding that pays an 8.5

ANSWERS TO 7 & 8 needed. will like & comment feedback,

ANSWERS TO 7 & 8 needed. will like & comment feedback, thank you

7. Collingwood Homes has a bond issue outstanding that pays an 8.5 percent coupon and matures in 16.5 years. The bonds have a par value of $1,000 and a market price of $944.30. Interest is paid semiannually. What is the yield to maturity? A. 8.36 percent B. 8.42 percent C. 8.61 percent D. 8.74 percent E. 9.16 percent 8. A corporate bond is quoted at a price of 103.16 and carries a 5.20 percent coupon. The bond pays interest semiannually. What is the current yield on one of these bonds? A. 4.24 percent B. 5.04 percent C. 5.36 percent D. 5.62 percent E. 5.66 percent

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