Question a 6-year circular file bond with a face value of, Ask an Expert

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Question: A 6-year Circular File bond with a face value of $1,000 pays interest once a year of $75 and sells for $962.

a. What are its coupon rate and yield to maturity? (Do not round intermediate calculations. Enter the coupon rate as a percent rounded to 1 decimal place and the yield to maturity as a percent rounded to 2 decimal places.)

Coupon rate %

Yield to maturity %

b. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond offer? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92767420

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