Question: need help with 19 and 20 Question 19 (3.5 points) Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and
Question 19 (3.5 points) Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 20 years. The bonds have an annual coupon rate of 20.0% with semi- annual coupon payments. The current market price for the bonds is $876. The bonds may be called in 5 years for 120.0% of par. What is the quoted annual yield-to- maturity for the bonds? O 31.16% 11.44% O 25.81% 26.77% 22.87% Question 20 (3.5 points) Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $868. The bonds may be called in 6 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible? -4
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