FIN 300 Quiz 3 Bond Solutions.pdf - QUIZ 3 SOLUTIONS FOR...

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QUIZ 3 SOLUTIONS FOR BOND PROBLEMS 1.Builtrite bonds have the following: 7 1/4% coupon, 12 years until maturity, $1000 par and are currently selling at $1042. If you purchase this bond, what would be your AYTM?
$1000 par and are currently selling at $963. If you purchase this bond, what would be your AYTM?
2. Builtrite bonds have the following: 6 3/4% coupon, 18 years until maturity, $1000 par and are currently selling at $988. If you want to make an 6% return, what would you be willing to pay for the bond?
Builtrite bonds have the following: 7 1/4% coupon, 12 years until maturity, $1000 par and are currently selling at $952. If you want to make an 6% return,

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