Question: Can you answer these these two questions for me please? 1- The Green Cable Corporation issued a new series of bonds on January 5, 2015.
Can you answer these these two questions for me please?
1- The Green Cable Corporation issued a new series of bonds on January 5, 2015. The bonds were sold at par ($1,000), have a 6% coupon rate, and mature in 30 years on December 31, 2044. Coupon interest payments are made semiannually (on June 30 and December 31).
What was the yield to maturity (YTM) of the bond on January 5, 2015?
A- None of the above
B- 12%
C- 3%
D- 6.09%
2- The Green Cable Corporation issued a new series of bonds on January 5, 2015. The bonds were sold at par ($1,000), have a 6% coupon rate, and mature in 30 years on December 31, 2044. Coupon interest payments are made semiannually (on June 30 and December 31).
Assuming that interest rates had fallen to 5%, what was the price of the bond on January 1, 2020 (five years later)?
A- $1300.00
B- $1141.81
C- None of the above
D- $1000.00
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