9. Messenger, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The bonds have 11 years until maturity, and sell for $925. What is the current yield for Messenger's bonds? A. 2.16% B. 3.45% C. 4.32% D. 5.52%

9. Messenger, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. The bonds have 11 years until maturity, and sell for $925. What is the current yield for Messenger's bonds? A. 2.16% B. 3.45% C. 4.32% D. 5.52%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual...

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Question

9. Messenger, Inc. bonds have a 4% coupon rate with semiannual coupon payments
and a $1,000 par value. The bonds have 11 years until maturity, and sell for $925.
What is the current yield for Messenger's bonds?
A. 2.16%
B. 3.45%
C. 4.32%
D. 5.52%

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