The Pennington corporation issued bonds on January 1, 1987. The bonds were sold at par...
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The Pennington corporation issued bonds on January 1, 1987. The bonds were sold at par had 12% annual coupon paid semi-annually and mature December 31, 2016. a) What was the Yield-to-Maturity (YTM) on the date the bonds were issued? b) What was the price on January 1, 1992, assuming interest rates have fallen to 10%? c) Find the current yield, capital gains/losses yield and total yield on January 1, 1992?
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