1. Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds...

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Finance

1. Jackson Corporation's bonds have 5 years remaining tomaturity. Interest is paid annually, the bonds have a $1,000 parvalue, and the coupon interest rate is 11%. The bonds have a yieldto maturity of 12%. What is the current market price of thesebonds? Round your answer to the nearest cent.
2. Wilson Wonders' bonds have 15 years remaining to maturity.Interest is paid annually, the bonds have a $1,000 par value, andthe coupon interest rate is 12%. The bonds sell at a price of$1,100. What is their yield to maturity? Round your answer to twodecimal places.

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Solution to QUESTION1 Current Market Price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the Face ValuePar Value The Price of the Bond is normally calculated either by using EXCEL Functions or by using Financial Calculator Here the calculation of the See Answer

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