A firm’s bonds have a maturity of 18 years with a $1,000 face value, a 13 percent semiannual coupon, are callable in 4 years at $1,055, and currently sell at a price of $1,156.  What is their yield to maturity (YTM)?   a. 8.33%   b. 9.40%   c. 13.00%   d. 10.99%   e. 11.08%

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A:

Q: Which of the following relationships is most accurate regarding a 20-year corporate bond that sells…

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Q: Bond XYZ has a par value of $1,000, an 8% semiannual coupon rate and 10 years to maturity. Bond XYZ…

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A: Formula:Bond Price=∑t−1n​ 𝐶/(1+𝑟)^𝑡+𝐹/(1+𝑟)^𝑛 Variables:• 𝐶 = Annual Coupon Payment = Face…

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A: Now by using excel    THANK YOU (please give to me rating)

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.