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Problem 11-10 Approximate yield to maturity and cost of debt [L011-3] Russell Container Corporation has a $1,000 par value bo
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Bond Par value Annual coupon payment Current Price Maturity (years) $1,000.00 $126.00 $880.00 30 7 a. Yield on new issue 14.3

Cell reference -

F28 BC 1000 NM + UN Bond Par value Annual coupon payment Current Price Maturity (years) 126 880 30 Yield on new issue =RATE(C

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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