Question: Please help with Problem 8 . 3 0 ( c ) Wildhorse Corp. has 1 8 - year bonds outstanding. These bonds, which pay interest
Please help with Problem c
Wildhorse Corp. has year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of percent
and a yield to maturity of percent. Assume face value is $
Problem a
Your answer is correct.
Compute the current price of these bonds. Round answer to decimal places, eg
Current price $
Problem b
Your answer is correct.
If the bonds can be called in five years at a premium of percent over par value, what is the investor's realized yield? Round
answer to decimal places, eg
Realized yield
Problem c
X Your answer is incorrect.
If you bought one of these bonds today, what is your expected rate of return? Round answer to decimal places, eg
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