0 Question 1 Staind, Inc., has 12 percent coupon bonds on the market that have 22 years left to maturity. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price? Answer the question with 2 decimals (e.g. 1030.12) 1,727.63 Question 2 Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently sells for $1063.25, what is its YTM? Answer with 4 decimals (001331

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 1
Staind, Inc., has 12 percent coupon bonds on the market that have 22 years left to maturity. The
bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond
price? Answer the question with 2 decimals (e.g. 1030.12)
1,727.63
Question 2
Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds
make annual payments. If the bond currently sells for $1063.25, what is its YTM? Answer with 4
decimals (e.g. 0.0123)
0.5982
Transcribed Image Text:0 Question 1 Staind, Inc., has 12 percent coupon bonds on the market that have 22 years left to maturity. The bonds make semiannual payments. If the YTM on these bonds is 6 percent, what is the current bond price? Answer the question with 2 decimals (e.g. 1030.12) 1,727.63 Question 2 Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently sells for $1063.25, what is its YTM? Answer with 4 decimals (e.g. 0.0123) 0.5982
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