An XYZ April 2051 bond with a 9.96 percent coupon interest rate and a par value of $1,000.00 recently had a price of 88.688. Calculate the following: a. When will the bond mature? b. How much will you have to pay to purchase this bond? c. What is the current yield based on the price that you calculate in part b? a. The bond will mature in the year (Type a whole number.) b. To purchase this bond, you would have to pay $ (Round to the nearest cent.) c. The current yield is %. (Round to two decimal places.)

An XYZ April 2051 bond with a 9.96 percent coupon interest rate and a par value of $1,000.00 recently had a price of 88.688. Calculate the following: a. When will the bond mature? b. How much will you have to pay to purchase this bond? c. What is the current yield based on the price that you calculate in part b? a. The bond will mature in the year (Type a whole number.) b. To purchase this bond, you would have to pay $ (Round to the nearest cent.) c. The current yield is %. (Round to two decimal places.)

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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