Unicorp issued 8 annual coupon rate bonds five years ago


Unicorp issued 8% annual coupon rate bonds five years ago. Interest is paid semi-annually.

The bonds have a par value of $1000 and had an original maturity of 20 years when issued.

a. If the bond is currently priced at $1142.36, what is its yield-to-maturity?

b. If the current price is $881.35, what is its yield-to-maturity?

c. If the bond is bought at par value, what is its yield-to-maturity?

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Financial Management: Unicorp issued 8 annual coupon rate bonds five years ago
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