Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to...

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Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to...

Field Industries' outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $1,075. What is the bond's nominal (annual) coupon interest rate?

Select the correct answer.

a. 9.86%

b. 9.70%

c. 10.18%

d. 10.02%

e. 10.34%

business finance

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Answer 1

Answer #1

Face value ofbond = $1,000 Term = 25 Years * 2 = 50 Periods Current price of bond - S1,07:5 YTM = 9.25% * 612 = 4.625% Per pe

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Answer 2

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