1. S&L Inc., has 8 percent coupon bonds in the market that have 7 years to maturity. The bonds make semiannual payments. If the YTM on these bonds 10 percent, what is the value of this bond? 2. If you're holding a bond that has 5 years left to maturity, and with quarterly coupon rate of 6.7%. the bond currently sells for $1,150m What is the YTM?

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter22: Corporations: Bonds
Section: Chapter Questions
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Cc. 180.

1. S&L Inc., has 8 percent coupon bonds in the market
that have 7 years to maturity. The bonds make
semiannual payments. If the YTM on these bonds 10
percent, what is the value of this bond?
2. If you're holding a bond that has 5 years left to
maturity, and with quarterly coupon rate of 6.7%. the
bond currently sells for $1,150m What is the YTM?
Transcribed Image Text:1. S&L Inc., has 8 percent coupon bonds in the market that have 7 years to maturity. The bonds make semiannual payments. If the YTM on these bonds 10 percent, what is the value of this bond? 2. If you're holding a bond that has 5 years left to maturity, and with quarterly coupon rate of 6.7%. the bond currently sells for $1,150m What is the YTM?
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