Company XYZ's bonds have 12 years remaining to maturity. Interest is paidiannually, the bonds have a $1,000 par value, the coupon rate is 10%. Thebonds sell at $850. What is their yield to maturity?O a. 12.12%Ob. 12.48%Oc 12.76%O d. 12.92%e. none of the above Academic PortalLIBIS-Sampoerna. DashboardVitalSource Booksh...Spotify-Web PlayerCompany XYZ's bonds have 12 years remaining to maturity, interest is paidannually, the bonds have $1,000 par value, and the coupon rate is 8%. Thebonds have a yield to maturity of 9%. What is the current market price ofthese bonds?*a. 828.78b. 968.39C. 1,000,00d. 1,075.36e. none of the above

Face value (F) = $1000 Coupon (C) = 10% of 1000 = $100 n = 12 years Selling price = $850 Let r = YTM…

Company XYZ's bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, the coupon rate is 10%. The bonds sell at $850. What is their yield to maturity? Oa. 12.12% Ob. 12.48% O c. 12.76% O d. 12.92% e. none of the above

Company XYZ's bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, the coupon rate is 10%. The bonds sell at $850. What is their yield to maturity? Oa. 12.12% Ob. 12.48% O c. 12.76% O d. 12.92% e. none of the above

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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Question

Company XYZ's bonds have 12 years remaining to maturity. Interest is paidi
annually, the bonds have a $1,000 par value, the coupon rate is 10%. The
bonds sell at $850. What is their yield to maturity?
O a. 12.12%
Ob. 12.48%
Oc 12.76%
O d. 12.92%
e. none of the above

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Company XYZ's bonds have 12 years remaining to maturity, interest is paid
annually, the bonds have $1,000 par value, and the coupon rate is 8%. The
bonds have a yield to maturity of 9%. What is the current market price of
these bonds?*
a. 828.78
b. 968.39
C. 1,000,00
d. 1,075.36
e. none of the above

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