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Author Question: Sadik Inc.s bonds currently sell for $1,400 and have a par value of $1,000. They pay a $150 annual ... (Read 38 times)

trevg

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on: Aug 7, 2023

Question 1

Risky Inc. issued a bond 6 years ago with a term to maturity of 10 years. The bond pays a coupon of 14% (stated annually, paid semiannually). If Risky Inc.’s bond is currently priced at $810, what is this bond’s yield to maturity?

◦

18.20%


◦

19.34%


◦

21.29%


◦

22.60%



Question 2

Sadik Inc.’s bonds currently sell for $1,400 and have a par value of $1,000. They pay a $150 annual coupon and have an 18-year maturity, but they can be called in 8 years at $1,200. What is their yield to call (YTC)?

◦

9.15%


◦

9.44%


◦

9.68%


◦

9.91%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by trevg on Aug 7, 2023

nora9826

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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trevg

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

ktidd

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Reply 3 on: Yesterday
Wow, this really help

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