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Author Question: Quigley Inc.s bonds currently sell for $1,290 and have a par value of $1,000. They pay a $110 annual ... (Read 48 times)

Bobvance

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Question 1

O’Brien Ltd.’s outstanding bonds have a $1,000 par value, and they mature in 20 years. Their nominal yield to maturity is 8.9%, they pay interest semiannually, and they sell at a price of $870. What is the bond’s nominal (annual) coupon interest rate?

7.25%


7.50%


7.85%


8.10%



Question 2

Quigley Inc.’s bonds currently sell for $1,290 and have a par value of $1,000. They pay a $110 annual coupon and have a 13-year maturity, but they can be called in 5 years at $1,186. What is their yield to maturity (YTM)?

7.44%


7.70%


8.03%


8.28%



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Marked as best answer by Bobvance on Aug 7, 2023

heathercab

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Bobvance

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


scikid

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Reply 3 on: Yesterday
:D TYSM

 

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