Question

Mundo Industries, Inc. has a bond issue outstanding with a coupon of 7.0 percent that matures...

Mundo Industries, Inc. has a bond issue outstanding with a coupon of 7.0 percent that matures in 10 years. The bond is currently priced at $940 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

8.43%

7.88%

8.93%

6.11%

7.14%

0 0
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Answer #1

Face Value = 1000 Time = 10x2= 20 period Coupon = / X1000 = 35 Present value = 440 Using financial calculator, fv = 1000 w =

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