The 7.4 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and have a $1,000 face value. Currently, the bonds sell for $985. What is the yield to maturity?
The 7.4 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and have a $1,000 face value. Currently, the bonds sell for $985. What is the yield to maturity?
Bonds are fixed-income assets that serve as a representation of investor loans to borrowers (typically corporate or governmental). A bond is analogous to a contract outlining the terms of a loan and the associated payments between a lender and borrower. Corporations, towns, cities, states, and other sovereign governments utilise bonds to finance projects and operations. Bondholders are the issuer's borrowers or creditors. Bond specifications sometimes include the terms for the borrower's variable or fixed interest payments as well as the estimated date by which the loan's principal will be paid back to the bond owner.
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