Consider the following information on a bond for the next 2 problems:
Coupon rate = 11%
Maturity = 18 years
Par value = $1,000
market price for this bond $1,169
First par call in 13 years
Only put date in five years and putable at par value
26. The annual YTM on a bond-equivalent basis is approximately:
a.7.099%
b. 9.077%
c.11%
d.10.23%
e.11.49%
27. Which of the following is false?
a.The PV of the total coupon payments is $966.663
b.The PV of the maturity value is $202.327
c.The bond is sold at a discount
d.The bond is sold at a premium
e.The bond price shows a capital gain