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QUESTION 51 The following information applies to the next 4 questions. A major chemical manufacturer...

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QUESTION 51 The following information applies to the next 4 questions. A major chemical manufacturer has experienced a market reevaluation lately due to a number of lawsuits. The firm has a bond issue outstanding with 20 years to maturity and a coupon rate of 7% (paid annually). The required rate has now risen to 10%. The par value of the bond is $1,000. What is the current value of these securities? O 727.88 O 744.59 O 794.28 818.10 881.68 What is the current yield of this bond? 8.12% 8.22% , o 8.35% o 8.55% o 9.40% what would be the selling price of the same 7% coupon bond one year later, if the market interest rate remains at 10%? 735.23 749.05 805.67 O823.56 898.42 If the 7% coupon bond with time to maturity of 20 years is selling for $901.82, what is the yield to maturity of the bond? 6.5% 8.0% 9.0% 9.5% 10.0%

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