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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 Summary

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

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