8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of $80 and sells for $950. (LO6-2) a. What is its coupon rate'? b. What is its yield to maturity? c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond offer?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of
$80 and sells for $950. (LO6-2)
a. What is its
b. What is its yield to maturity?
c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond
offer?
coupon
rate?
Transcribed Image Text:8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of $80 and sells for $950. (LO6-2) a. What is its b. What is its yield to maturity? c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond offer? coupon rate?
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