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Company X is rated A and had 3 bonds issued 2 years ago. All the bonds were issued at par. Bond A is a 6% 10-year bond with yield maturity f 5% and par value of $100. Bond B is a callable bond and Bond C is a puttable bond, both with 10 years to maturity and par value or $1000. All bonds pay coupouns annually.
A) compute the current price of Bond A
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- sThe Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8 years. The bond certificate indicates that the stated coupon rate for this bond is 9.7% and that the coupon payments are to be made semiannually. Assuming that this bond trades for $1,010, then the YTM for this bond is closest to: A. 11.4% B. 7.6% C. 13.3% D. 9.5%Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which is also the amount of principal to be paid at maturity. The bonds are currently selling for $520. They have 10 years to maturity, Annual interest is 12 percent ($120), paid semiannually Compute the yield to maturity. (Do not round intermediate calculation. Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Yield to maturity %
