Blossom Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.905 percent and a yield to maturity of 8.1 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is correct. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Media Problem 8.30(b) 1169.47 Realized yield If the bonds can be called in five years at a premium of 12.0 percent over par value, what is the investor's realized yield? (Round answer to 3 decimal places, e.g. 15.255%.) Attempts: unlimited %

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the...
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A 79.

Blossom Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.905 percent and
a yield to maturity of 8.1 percent. Assume face value is $1,000.
Problem 8.30(a)
Your answer is correct.
Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.)
Current price $
e Textbook and Media
Problem 8.30(b)
1169.47
Realized yield
If the bonds can be called in five years at a premium of 12.0 percent over par value, what is the investor's realized yield? (Round
answer to 3 decimal places, e.g. 15.255%.)
Attempts: unlimited
%
Transcribed Image Text:Blossom Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.905 percent and a yield to maturity of 8.1 percent. Assume face value is $1,000. Problem 8.30(a) Your answer is correct. Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.) Current price $ e Textbook and Media Problem 8.30(b) 1169.47 Realized yield If the bonds can be called in five years at a premium of 12.0 percent over par value, what is the investor's realized yield? (Round answer to 3 decimal places, e.g. 15.255%.) Attempts: unlimited %
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