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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,...

This question was answered on Mar 15, 2010. View the Answer
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.

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This question was asked on Mar 15, 2010 and answered on Mar 15, 2010.

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