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2 questions

1. Brown enterprises bonds currently sell for 1025.00 They have a 9-year maturity, an annual coupon or 80.00 and a par value of 1,000 what is their current yield

A. 7.8
B. 7.9
C. 9.0
D. 9.1
E. 9.2

2. Sharmberry Venutes recently issued bonds that mature in 15 years. They have a par value of 1,000 and an annual coupon of 6%. If the current market interest rate is 8% what price should the bonds sell

A. 801.80
b. 814.74
c. 828.81
d. 830.53

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Solution Summary

The solution explains how to calculate the current yield and the price of a bond.

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