Question: Question 14 (4 points) Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with

Question 14 (4 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? 9.39% 12.21% 13.42% 10.13% 8.30% Question 15 (4 points) Yes They Can, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 34 years. The annual coupon rate is 11.0% with quarterly coupon payments. The bonds are currently selling for $1,054. The bonds may be called in 4 years for 111.0% of par. What is the quoted annual yield-to-call for these bonds? 10.70% 14.93% 11.50% 2.60% 10.42%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
