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Unformatted text preview: 4092 208.06 229.58 5739.6 775.99 646.85 129.14 4225.78 4238.69 12.91 28919.41 34867.07 The current yield is lower than the YTM, as the current yield doesnt consider the capital gain arising due to the market price lower than the par value. The other bond is issued late then compex systems bond, as the market interest has declined after that Other company bond provides more restrictive covenant or protection to the bond holder as compared to Complex System bond In case the required return in 12%, then the bond price would be 1000. As in this case the required return Is equal to the bond coupon payment...
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This note was uploaded on 12/04/2011 for the course ECONOMICS 201 taught by Professor Rcollier during the Spring '10 term at Portland CC.
- Spring '10