contestada

Keyser Materials has 8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 102 percent of par. What is the current yield

Relax

Respuesta :

Answer: 1020

Explanation:

The following information can be gotten from the question:

Face value of bond = 1000

Coupon = 8%

Therefore, PMT = 8% × 1000/2 = 40

Years to maturity = 19

Since semiannual payments are made,

Nper = 19 × 2 = 38

Current price = PV

= 102% × 1000

= 1.02 × 1000

= 1020

1. Current Yield = Coupon/Current prce

= (2*40)/1020 = 7.84%

Otras preguntas