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

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Finance

Sheridan, 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 $863.92

1. What is the yield to maturity that an investor who buys themtoday can expect to earn? (Round answer to 3 decimal place, e.g.5.275%.)

2. What is the effective annual yield? (Round answer to 3decimal places, e.g. 5.275%.)

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4.2 Ratings (771 Votes)
aInformation provided Par value future value 1000 Coupon rate 462 230 Coupon payment 00231000 23 Current pricepresent value 86392 Time 8    See Answer
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Sheridan, 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 $863.921. What is the yield to maturity that an investor who buys themtoday can expect to earn? (Round answer to 3 decimal place, e.g.5.275%.)2. What is the effective annual yield? (Round answer to 3decimal places, e.g. 5.275%.)

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