Question: Your firm has two bond issues outstanding. The first consists of 12,000 bonds denominated in Euros, which have a face value of 1,000 that pay

 Your firm has two bond issues outstanding. The first consists of

Your firm has two bond issues outstanding. The first consists of 12,000 bonds denominated in Euros, which have a face value of 1,000 that pay 4.70% annual coupons and mature in 9 years. These are selling at 880.19, which implies a yield-to-maturity of 6.5%. The second issue consists of 16,000 bonds denominated in US Dollars, with a face value of $1,000 that pay 5.80% annual coupons and mature in 5 years. These bonds are currently selling at $983.24. The current foreign exchange rates between major international currencies are provided below. USD GBP CAD EUR AUD USD 1.000 0.715 1.212 0.822 1.275 GBP 1.399 1.000 1.696 1.150 1.784 CAD 0.825 0.590 1.000 0.678 1.052 EUR 1.216 0.869 1.475 1.000 1.551 AUD 0.784 0.561 0.951 0.645 1.000 (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 3.16.) What is the yield-to-maturity of the second bond issue? % What is the USD-denominated weighted-average yield-to-maturity on the firm's two outstanding bond issues? %

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