Question: Use this information for problems 1-5. Five years ago, Stevie Co., issued bonds with a 25-year maturity with a coupon rate of 7.5%. The bonds
Use this information for problems 1-5. Five years ago, Stevie Co., issued bonds with a 25-year maturity with a coupon rate of 7.5%. The bonds make semiannual payments, and the yield-to-maturity is 6.8%.
1. What is the coupon payment per period for these bonds? (Round to TWO decimal places, do not include dollar sign.)
2. What is the yield-to-maturity per period for these bonds? (Put in percent form without percent sign, round to TWO decimal places.)
3. How many periods are left until the bonds matures? (Round to the nearest whole number)
4. What is the current bond price? (Round to TWO decimals, do not include dollar sign.)
5.
What is the bond trading at?
| a. | Premium | |
| b. | Not enough information | |
| c. | Discount | |
| d. | Par |
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