Florifa power sold 300 million of 12 year nots due december


Florifa Power sold $300 million of 12 year nots due December 1, 2015. The notes were sold at $99.802 per $100 with a coupon rate of 5.10%. As of December 21, 2005, they sold on the market for $98.271 per $100. If $5000 worth (face value) of bonds were purchased on December 1, 2003, with semi-annual coupon payments answer the following questions:

A. What is the yield to maturity on the investment?

B. What is the yield to maturity on a similar investment made in December 2005?

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Financial Management: Florifa power sold 300 million of 12 year nots due december
Reference No:- TGS0976294

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