49. Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to maturity (YTM)? a. 5.78% b. 6.09% c. 6.39% d. 7.05%
49. Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to maturity (YTM)? a. 5.78% b. 6.09% c. 6.39% d. 7.05%
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
Section: Chapter Questions
Problem 1PS
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49. Dyl Inc.'s bonds currently sell for $1,040 and have a par value
of $1,000. They pay a $65 annual coupon and have a 15-year
maturity, but they can be called in 5 years at $1,100. What is
their yield to maturity (YTM)?
a. 5.78%
b. 6.09%
c. 6.39%
d. 7.05%
50. Radoski Corporation's bonds make an annual coupon interest
payment of 7.35%. The bonds have a par value of $1,000, a
current price of $1,130, and mature in 12 years. What is the
yield to maturity on these bonds?
a. 5.52%
b. 5.82%
c. 6.11%
d. 6.73%
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