Problemthatcher corporations bonds will mature in 20 years, Ask an Expert

Accounting

Problem:

Thatcher Corporation's bonds will mature in 20 years. The bonds have a face value of $1,000 and an 12% coupon rate, paid semiannually. The price of the bonds is $850. The bonds are callable in 5 years at a call price of $1,050. Round your answers to two decimal places.

Required:

Question 1: What is their yield to maturity?

Question 2: What is their yield to call?

Note: Please show how you came up with the solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171858

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