2. Answer :a. 8.55 %
Current price of the bonds = $ 90 x 5.2064 + $ 1,000 x 0.5835 = $ 1,052.08
Current yield = Annual Coupon / Current Market Price = $ 90 / $ 1,052.08 * 100 = 8.55 %
3. Answer: b. $ 1,028.60
Price of the bonds = 45 x [ { 1 - ( 1 / 1.0425) 16 + 1,000 x ( 1 / 1.0425 ) 16 = 45 x 11.44031 + $ 1,000 x 0.51379 = $ 1,028.60
2. Country Sun Foods' bonds have 7 years remaining to maturity. The bonds have a face...
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