Mr. Cullums has 5-yr semi-annual bonds outstanding that pay a coupon rate of 8.1%, these bonds are priced at $1066.66. What is the YTM on these bonds? (Round 2 decimal places) _______% Assume semi-annual coupon pymts. What is the effective annual yield?(again, round 2 decimal places) _______%

Mr. Cullums has 5-yr semi-annual bonds outstanding that pay a coupon rate of 8.1%, these bonds are priced at $1066.66. What is the YTM on these bonds? (Round 2 decimal places) _% Assume semi-annual coupon pymts. What is the effective annual yield?(again, round 2 decimal places) _%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2EB: Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the...

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Question

100%

Mr. Cullums has 5-yr semi-annual bonds outstanding that pay a coupon rate of 8.1%, these bonds are priced at $1066.66.

What is the YTM on these bonds? (Round 2 decimal places)

_______%

Assume semi-annual coupon pymts. What is the effective annual yield?(again, round 2 decimal places) _______%

Definition Definition Calculates the present value of a bond's expected future periodic coupon payments. Bond valuation determines the theoretical fair value of a particular bond and helps investors estimate what rate of return they could expect. The bond's theoretical fair value is computed by discounting the future cash flows or coupon payments by an applicable discount rate.

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