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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 54 times)

trevg

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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%



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Marked as best answer by trevg on Aug 7, 2023

nora9826

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trevg

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Reply 2 on: Aug 7, 2023
Excellent


xoxo123

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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