Question: Please answer a and b , please show work / formulas for how you solved. Pharoah Corp. has five - year bonds outstanding that pay
Please answer a and b please show workformulas for how you solved.
Pharoah Corp. has fiveyear bonds outstanding that pay a coupon rate of percent. If these bonds are priced at $ Assume face value is $Round answers to decimal places, eg
a What is the yield to maturity on these bonds, assuming semiannual payments?
Yield to maturity:
b Assume semiannual coupon payments. What is the effective annual yield?
Effective annual yield:
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