Smithson Co.'s Class A bonds have 10 years to go until maturity. They have a $1,000 face value and carry coupon rates of 8%. Approximately what do the bonds yield at the following price ? Assume bond coupons are paid semiannually. $875.

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
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Smithson Co.'s Class A bonds have 10 years to
go until maturity. They have a $1,000 face value
and carry coupon rates of 8%. Approximately
what do the bonds yield at the following
price ? Assume bond coupons are paid
semiannually.
$875.
Transcribed Image Text:Smithson Co.'s Class A bonds have 10 years to go until maturity. They have a $1,000 face value and carry coupon rates of 8%. Approximately what do the bonds yield at the following price ? Assume bond coupons are paid semiannually. $875.
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