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Author Question: Acme Inc. just issued a bond with a $10,000 face value and a coupon rate of 7%. If the bond has a ... (Read 67 times)

tth

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Question 1

A semi-annual coupon matures in one year. It has a face value of $1,000, a coupon rate of 4%, and the next semi-annual coupon is due in six months. The bond trades for $971.50. What is the yield to maturity of the bond?
◦ 3.50%
◦ 3.56%
◦ 4.00%
◦ 7.00%
◦ 7.12%

Question 2

Acme Inc. just issued a bond with a $10,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays semi-annual coupons, and the yield to maturity is 9%, what will the bond sell for?
◦ $7,936.20
◦ $4,349.49
◦ $7,945.27
◦ $10,000
◦ $7,904.45


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Marked as best answer by tth on Apr 25, 2021

Anonymous

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tth

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Reply 2 on: Apr 25, 2021
Excellent


laurnthompson

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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