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# vv-18 - matures a 7 years b 10 years c 14 years d 18 years...

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Chapter 6 In-Class Drill Problems 1. Gugenheim, Inc. offers a 7 percent coupon bond with annual payments. The yield to maturity is 5.85 percent and the maturity date is 9 years. What is the market price of a \$1,000 face value bond? a. \$742.66 b. \$868.67 c. \$869.67 d. \$1,078.73 e. none of the above Enter 9 5.85 70 1,000 N I/Y PV PMT FV Solve for -1,078.73 2. The zero coupon bonds of Markco, Inc. have a market price of \$394.47, a face value of \$1,000, and a yield to maturity of 6.87 percent. How many years is it until this bond

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Unformatted text preview: matures? a. 7 years b. 10 years c. 14 years d. 18 years e. none of the above Enter 6.87 -394.47 1,000 N I/Y PV PMT FV Solve for 14 3. D’Angelo’s bonds have a face value of \$1,000 and a current market price of \$1010. The bonds have a 7 percent coupon rate. What is the current yield on these bonds? a. 6.93 percent b. 6.97 percent c. 7.00 percent d. 7.03 percent e. none of the above 1 Current yield = percent...
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vv-18 - matures a 7 years b 10 years c 14 years d 18 years...

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