– the company has 20,000 bonds with a face value of $100 each and a coupon rate of 5% with interest paid semi-annually. The current price of the bonds is $98, and they have 14 years to maturity. Flotation costs are debt is estimated at 5.5%. What is yield to maturit

– the company has 20,000 bonds with a face value of $100 each and a coupon rate of 5% with interest paid semi-annually. The current price of the bonds is $98, and they have 14 years to maturity. Flotation costs are debt is estimated at 5.5%. What is yield to maturit

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 2P

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Bonds – the company has 20,000 bonds with a face value of $100 each and a coupon rate of 5% with interest paid semi-annually. The current price of the bonds is $98, and they have 14 years to maturity. Flotation costs are debt is estimated at 5.5%. What is yield to maturity?

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