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Author Question: Consider a Federal Government coupon bond with a $1,000 face value and a coupon rate of 1%. If the ... (Read 63 times)

Kikoku

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on: Apr 25, 2021

Question 1

Consider a 6-year corporate bond issued by Vandalay Industries. The bond has a face value of $1,000, and has an annual coupon rate of 6.8%. The yield to maturity of the bond is 8.2%. What is the fair price for the bond today?
◦ $961.29
◦ $935.67
◦ $1000.92
◦ $1000.00
◦ $623.21

Question 2

Consider a Federal Government coupon bond with a $1,000 face value and a coupon rate of 1%. If the bond matures in 25 years, pays semi-annual coupons, and the yield to maturity is 5%, then what will the bond sell for?
◦ $432.75
◦ $365.77
◦ $436.24
◦ $1,000
◦ $804.02
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Kikoku on Apr 25, 2021

owenfalvey

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Reply #1 on: Apr 25, 2021
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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Kikoku

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

ricroger

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

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