Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 12, Problem 9FPE

Which of these two bonds offers the highest current yield? Which one has the highest yield to maturity?

  1. a. A 6.55 percent, 22-year bond quoted at 52.000
  2. b. A 10.25 percent, 27-year bond quoted at 103.625
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Which of the following four bonds has the least Macaulay duration? A bond with   A.   4.75% yield and 40-year maturity.   B.   5.25% yield and 30-year maturity.   C.   6.75% yield and 20-year maturity.   D.   7.25% yield and 10-year maturity.
Which of the following bonds offers the highest current yield? a. A(n) 3.24%, 19-year bond quoted at 39.081. b. A(n) 5.40%, 28-year bond quoted at 65.135. c. A(n) 1.62%, 23-year bond quoted at 19.541. The current yield of the bond in part a is%. (Round to two decimal places.)
Assume that a $10,000.00 bond paying 8.5% interest is currently selling at 106. a. What is the current selling price of the bond?b. What is the current yield of this bond?
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