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a. Wee Beastie Animal Farm bonds have 9 years to maturity and pay an annual coupon...

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Finance

a. Wee Beastie Animal Farm bonds have 9 years to maturity andpay an annual coupon at the rate of 6 %. The face value of thebonds is $1,000.The price of the bonds is $1,082.29 to yield4.85%.What is the capital gain yield on the? bonds?

b. A 10?-year bond pays interest of $ 26.80 semiannually, has aface value of $1,000 and is selling for $719.86.What are its annualcoupon rate and yield to? maturity?

The annual coupon rate is %.?(Round to two decimal? places).

The yield to maturity is ?%.?(Round to two decimal? places).

Answer & Explanation Solved by verified expert
3.6 Ratings (534 Votes)
Answer a Face Value 1000 Current Price 106417 Annual Coupon Rate 640 Annual Coupon 640 1000 Annual Coupon 64 Dividend Yield Annual Coupon Current Price Dividend Yield 64    See Answer
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a. Wee Beastie Animal Farm bonds have 9 years to maturity andpay an annual coupon at the rate of 6 %. The face value of thebonds is $1,000.The price of the bonds is $1,082.29 to yield4.85%.What is the capital gain yield on the? bonds?b. A 10?-year bond pays interest of $ 26.80 semiannually, has aface value of $1,000 and is selling for $719.86.What are its annualcoupon rate and yield to? maturity?The annual coupon rate is %.?(Round to two decimal? places).The yield to maturity is ?%.?(Round to two decimal? places).

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