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# A company sold an issue of 12-year \$1,000 par bonds for general corporation finance purposes. The bonds pay 4.85% interest, semiannually. Today's...

1. A company sold an issue of 12-year \$1,000 par bonds for general corporation finance purposes. The bonds pay 4.85% interest, semiannually. Today's required rate of return is 9.7%. How much should these bonds sell for today?
2. a company issued of \$1,000 par value bonds with 18 years left until maturity. The coupon rate is 7.7%, with semi-annual payments. If the current price of the bond is \$1,175, what is the bond's YTM?
3. a company issued \$1000 par, 20-year bonds, with a coupon rate of 6.5% on April 30, 2015. If the bonds are currently selling at \$758.18, what is the bond's YTM?

#### Top Answer

660.45 3.0433% (semi annual)... View the full answer

1 comment
• I have written the answer with four decimals places because on checking the bond price as a test (to check if my answer is correct), the 4 decimals places give the exact bond prices
• payaljain3
• May 09, 2018 at 3:08am

#### Other Answers

Here is a detailed explanation... View the full answer

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