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  3. 1) xyz industries bond has a 10% coupon rate and a

1) XYZ Industries bond has a 10% coupon rate and a $1,000 face value. Interest...

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Finance

  1. 1) XYZ Industries bond has a 10% coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond has 25 years to maturity. If investors require a 13% yield, what is the bonds value? What is the effective annual yield on the bond?

  2. 2) XYZ Corp. bond carries an 8% coupon, paid semiannually. The par value is $1,000, and the bond matures in six years. If the bond currently sells for $911.37, what is its yield to maturity? What is the effective annual yield?

  3. 3) XYZ Co. issued 15-year bonds a year ago at a coupon rate of 4.9%. The bonds make semiannual payments and have a par value of $1,000.

    1. a) If the YTM on these bonds is 4.5%, what is the current bond price?

    2. b) If the YTM on these bonds is 4.9%, what is the current bond price?

    3. c) If the YTM on these bonds is 4.0%, what is the current bond price?

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