A 10-year Circular File bond with face value of $1,000 pays interest once a year of $65 and sells for $972. a. What are its coupon rate and yield to maturity? Note: Do not round intermediate calculations. Enter the coupon rate as a whole percent and the yield to maturity as a percent rounded to 2 decimal places. Coupon rate Yield to maturity % b. If Circular wants to issue a new 10-year bond at face value, what coupon rate must the bond offer? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

A 10-year Circular File bond with face value of $1,000 pays interest once a year of $65 and sells for $972. a. What are its coupon rate and yield to maturity? Note: Do not round intermediate calculations. Enter the coupon rate as a whole percent and the yield to maturity as a percent rounded to 2 decimal places. Coupon rate Yield to maturity % b. If Circular wants to issue a new 10-year bond at face value, what coupon rate must the bond offer? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

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