Xcel Energy has $300 million of 6.5% coupon bonds outstanding. The bonds mature in 2036 (assume exactly

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Xcel Energy has $300 million of 6.5% coupon bonds outstanding. The bonds mature in 2036 (assume exactly 18 years from today), have a face value of $1,000, pay interest semi-annually and are currently priced at $1,325.72.

What is this bond’s current YTM? Show as a % to two decimal places.

If market rates for bonds of this quality and maturity change to 4.10% what will the bond’s price change to?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Feb 13, 2024 02:04 AM

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Xcel Energy has $300 million of 6.5% coupon bonds outstanding. The bonds mature in 2036 (assume exactly

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To calculate the bonds current yield to maturity YTM we need to use the bond pricing ... View the full answer

Fundamentals of Corporate Finance

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