Question: Chapter 7 125 points) Question 1.13 points) ABC Enterprises has bonds on the market making annual payments, with 20 years to maturity, and selling for

Chapter 7 125 points) Question 1.13 points) ABC Enterprises has bonds on the market making annual payments, with 20 years to maturity, and selling for $880. At this price, the bonds yield 11.0 percent. What must the coupon rate be on the bonds? Answer: Justify your answer: Question 2. 13 points] ABC Corp. issued 15-year bonds 2 years ago at a coupon rate of 8.8 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM? Answer: Justify your answers

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