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Cullumber, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face...

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Finance

Cullumber, Inc., has bonds outstanding that will mature in 8years. The bonds have a face value of $1,000. These bonds payinterest semiannually and have a coupon rate of 4.6 percent. If thebonds are currently selling at $871.92, what is the yield tomaturity that an investor who buys them today can expect to earn?(Round answer to 3 decimal place, e.g. 5.275%.) Yield to maturity %What is the effective annual yield? (Round answer to 3 decimalplaces, e.g. 5.275%.) Effective annual yield %

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3.9 Ratings (653 Votes)
Information providedFace value future value 1000Time 8 years2 16 semiannual periodsCoupon rate 4602 230Coupon payment 002301000    See Answer
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Cullumber, Inc., has bonds outstanding that will mature in 8years. The bonds have a face value of $1,000. These bonds payinterest semiannually and have a coupon rate of 4.6 percent. If thebonds are currently selling at $871.92, what is the yield tomaturity that an investor who buys them today can expect to earn?(Round answer to 3 decimal place, e.g. 5.275%.) Yield to maturity %What is the effective annual yield? (Round answer to 3 decimalplaces, e.g. 5.275%.) Effective annual yield %

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