Problemfish amp chips have two bond issues outstanding and, Ask an Expert

Finance

Problem:

Fish & chips have two bond issues outstanding, and both sell for $701.22 the first issue has a coupon rate of 8% and 20 years to maturity. The second has an identical yield to maturity as the first bond, but only 5 years until maturity. Both issues pay interest annually.

Task:

What is the annual interest payment on the second issue? Please justify your answer and also provide all calculations and formulas

Answers:

a. 37.12

B. 29.68

C. $120.00

D. 56.42

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146600

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