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Four years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $835. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place. % If the bond can be called in five years for a redemption price of $1,081, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place. %

Four years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $835. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place. % If the bond can be called in five years for a redemption price of $1,081, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place. %

Essentials Of Investments
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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Four years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $835. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place. % If the bond can be called in five years for a redemption price of $1,081, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place. %
Transcribed Image Text:Four years ago Messy House Painting issued a 15-year bond with a $1,000 maturity value and a 5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $835. What is the bond's yield to maturity? Do not round intermediate calculations. Round your answer to one decimal place. % If the bond can be called in five years for a redemption price of $1,081, what is the bond's yield to call? Do not round intermediate calculations. Round your answer to one decimal place. %
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