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1- Abner? Corporation's bonds mature in 19 years and pay 8 percent interest annually. If you...

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Finance

1- Abner? Corporation's bonds mature in 19 years and pay 8percent interest annually. If you purchase the bonds for ?$1,075?,what is your yield to? maturity?

Your yield to maturity on the Abner bonds is _?%. ?(Round to twodecimal? places.)

2- The Saleemi? Corporation's ?$1,000 bonds pay 9 percentinterest annually and have 11 years until maturity. You canpurchase the bond for ?$955.

a.What is the yield to maturity on this? bond?

b.Should you purchase the bond if the yield to maturity on a?comparable-risk bond is 8 ?percent?

Answer & Explanation Solved by verified expert
4.1 Ratings (547 Votes)
Solution to QUESTION1 The Yield to maturity on the Abner bond The Yield to maturity of YTM of the Bond is calculated using financial calculator as follows Normally the YTM is calculated either using EXCEL Functions or by using Financial Calculator Variables Financial Calculator Keys Figure Face Value 1000 FV 1000 Coupon Amount 1000 x 8 PMT 80 Yield to Maturity YTM 1Y Time to Maturity 9 Years N 9 Bond Price 1075 PV 1075 We need to set the above figures into the financial    See Answer
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1- Abner? Corporation's bonds mature in 19 years and pay 8percent interest annually. If you purchase the bonds for ?$1,075?,what is your yield to? maturity?Your yield to maturity on the Abner bonds is _?%. ?(Round to twodecimal? places.)2- The Saleemi? Corporation's ?$1,000 bonds pay 9 percentinterest annually and have 11 years until maturity. You canpurchase the bond for ?$955.a.What is the yield to maturity on this? bond?b.Should you purchase the bond if the yield to maturity on a?comparable-risk bond is 8 ?percent?

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