Mark​ Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of 4 ​years, a par value of ​$1,000​, and a yield to maturity of 7.50%. The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of 6.326​% paid annually. The second ​ bond, issued by Malfoy​ Enterprises, has a coupon interest rate of 8.80​% paid annually. a.  The selling price for the Crabbe Waste Disposal bond is ​$____​(Round to the nearest​ cent.) The selling price for the Malfoy Enterprises bond is ​$____(Round to the nearest​ cent.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mark​ Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of 4 ​years, a par value of ​$1,000​, and a yield to maturity of 7.50%. The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of 6.326​% paid annually. The second ​ bond, issued by Malfoy​ Enterprises, has a coupon interest rate of 8.80​% paid annually.

a.  The selling price for the Crabbe Waste Disposal bond is ​$____​(Round to the nearest​ cent.)

The selling price for the Malfoy Enterprises bond is ​$____(Round to the nearest​ cent.)

b.  The number of Crabbe Waste Disposal bond issues Mark could purchase is ____ issues. ​(Round down to the nearest whole​ number.)

The number of Malfoy Enterprises bond issues Mark could purchase is ____ issues. ​(Round down to the nearest whole​ number.)

c.  The yearly interest income of the Crabbe Waste Disposal bond is ​$    ​(Round to the nearest​ cent.)

The yearly interest income of the Malfoy Enterprises bond is ​$      ​(Round to the nearest​ cent.)

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