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

need help with 19 and 20 need help with 19 and 20 Question 19 (3.5 points) Yes They

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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