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Author Question: What is the price of a five-year bond with a $1,000 face value and a 5% annual coupon rate that ... (Read 91 times)

haleyc112

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Question 1

Universal Exports Inc. just issued $1,000 face bonds for $1,211. The bonds have a maturity of ten years and a coupon rate of 10%. What is the bonds' yield to maturity?
◦ 7%
◦ 8%
◦ 10%
◦ 11%
◦ 12%

Question 2

What is the price of a five-year bond with a $1,000 face value and a 5% annual coupon rate that currently yields 7%?
◦ $784
◦ $897
◦ $918
◦ $1,000
◦ $1,087


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Marked as best answer by haleyc112 on Apr 25, 2021

jamesnevil303

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haleyc112

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review


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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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