FIN 300 Quiz 3 Bond and Stock Valuation.docx - FIN 300 Quiz...

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FIN 300 Quiz 3 Bond and Stock Valuation Question 1 Builtrite bonds have the following: 4 3/4% coupon, 12 years until maturity, $1000 par and are currently selling at $1030. If you purchase this bond, what would be your AYTM?
Question 2 Builtrite bonds have the following: 5 ½% coupon, 20 years until maturity, $1000 par and are currently selling at $1032. If you want to make an 6% return, what would you be willing to pay for the bond?
Question 3 Builtrite sold 18 year, $1000 par value, zero coupon bonds yielding 4%. What did they sell for?

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