Question 11 Craft & Creams plans to issue bonds with a par value of R1 000 and eight years to maturity. These bonds will pay R40 interest every six months. Current market conditions are such that the bonds will be sold to net R937,79. What is the yield to maturity (YTM) of the issue as a broker would quote it to an investor? 1. 2,48% 2. 4,56% 3. 7,24% 4. 9,11%
Question 11 Craft & Creams plans to issue bonds with a par value of R1 000 and eight years to maturity. These bonds will pay R40 interest every six months. Current market conditions are such that the bonds will be sold to net R937,79. What is the yield to maturity (YTM) of the issue as a broker would quote it to an investor? 1. 2,48% 2. 4,56% 3. 7,24% 4. 9,11%
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 11
Craft & Creams plans to issue bonds with a par value of R1 000 and eight years to maturity. These bonds will pay R40 interest every six months. Current market conditions are such that the bonds will be sold to net R937,79. What is the yield to maturity (YTM) of the issue as a broker would quote it to an investor?
1. 2,48%
2. 4,56%
3. 7,24%
4. 9,11%
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