Madsen motorss bonds have 22 years remaining to maturity


Bond valuation

Madsen Motors's bonds have 22 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9%; and the yield to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.

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Bond valuation

Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 12 years to maturity, and an 9% YTM. What is the bond's price? Round your answer to the nearest cent.

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Bond returns

Last year Janet purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.5%. If Janet sold the bond today for $1,077.28, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

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Financial Management: Madsen motorss bonds have 22 years remaining to maturity
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