Wildhorse Corp. has 18-year bonds outstanding. These bonds, which pay interest semiannually, have a coupon rate of 9.875 percentand a yield to maturity of 6.0 percent. Assume face value is $1,000.Problem 8.30(a)Your answer is incorrect.Compute the current price of these bonds. (Round answer to 2 decimal places, e.g. 15.25.)Current price $EA

Bond price is the present value of…

Answered: Wildhorse Corp. has 18-year bonds…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Dufner Co. issued 17-year bonds one year ago at a coupon rate of 73 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.3 percent, what is the current dollar price assuming a pe value of $1,000? (Do not round intermediate calculations and round your answer to decimal places, e.g., 32.16.) Parkway Void Co. issued 13-year bonds two years ago at a coupon rate of 9.3 percent. The bonds make semiannual payments. If these bonds currently sell for 106 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
got 7.78 and wasnt right
need help on both questions, thank you

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