Wine and Roses, Inc. offers a 6.5 percent coupon bond with semiannual payments and a yield to maturity of 6.99 percent. The bonds mature in 8 years. What is the market price of a $1,000 face value bond?
$1,393.21 $1,024.05 $1,363.56 $970.36 $1,577.15
Wine and Roses, Inc. offers a 6.5 percent coupon bond with semiannual payments and a yield to maturity of 6.99 percent. The bonds mature in 8 years. What is the market price of a $1,000 face value bond?
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Related questions
2.
Wine and Roses, Inc. offers a 6.0 percent coupon bond with semiannual payments and a yield to maturity of 6.91 percent. The bonds mature in 12 years. What is the market price of a $1,000 face value bond?
| $1,410.62 | |
| $1,442.55 | |
| $926.59 | |
| $1,023.89 | |
| $1,484.04 |
| 4. The Lo Sun Corporation offers a 6.0 percent bond with a current market price of $788.50. The yield to maturity is 8.40 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? | ||||||||||
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5.
A bond that pays interest annually yields a rate of return of 6.75 percent. The inflation rate for the same period is 2 percent. What is the real rate of return on this bond?
2.00 percent
4.66 percent
8.75 percent
3.38 percent
1.05 percent
