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    Bonds

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    5. The Reynolds Corporation issued $1,000-thirty year bonds which pay $120 annually in interest. The bonds are currently selling par.

    a. What is the coupon rate?
    b. What is the current price of the bonds?
    c What is current yield?
    d What is the yield to maturity?

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    Solution Preview

    5. The Reynolds Corporation issued $1,000-thirty year bonds which pay $120 annually in interest. The bonds are currently selling ...

    Solution Summary

    The solution calculates coupon rate, current price, current yield and the yield to maturity of the bonds.

    $2.19

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