The Pennington Corporation issued a new series of bonds on January 1, 1983. The bonds were sold at par value, which $1,000, have a 12 percent coupon, and mature in 30 years, on December 31, 2012. Coupon payments are made semiannually (on June 30 and December 31)
b. What was the price of the bond on January 1, 1988 (five years later), assuming that the level of interest rates had fallen to 10 percent?
d. On August 1, 2008, Pennington's bonds sold for $916.42. What was the YTM at that date.
Dear Student, The answer to your question... View the full answer