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Current bond price, YTM, coupon rate, real rate of interest

Staind, Inc. has 7.5 percent coupons and bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent, what is the current bond price?

Ackerman Co. has 9 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $934, what is the YTM?

Ashes Divide Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.8 percent, and a current price of $924. The bonds make semiannual payments. What must the coupon rate be on these bonds?

If treasury bills are currently paying 7 percent and inflation rate is 3.8 percent, what is the approximate real rate of interest? The exact real rate?

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Staind, Inc. has 7.5 percent coupons and bonds on the market that have 10 years left to
maturity. The bonds make annual payments. If the YTM on these bonds is 8.75 percent,
what is the current bond price?

The current price is the present value of interest and principal discounted at the YTM
Use the PV function to calculate the price
Annual interest 75
Maturity 10 years
Par value ...

Solution Summary

This solution helps explore financial concepts such as current bond price, YTM, and real rate of interest

$2.19