5. The valuation of bonds Natural Gas Producers Inc. (NGPI) has an issue of 5-year,...
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5. The valuation of bonds Natural Gas Producers Inc. (NGPI) has an issue of 5-year, 9% annual coupon bonds outstanding. The bonds, which were originally issued 15 years ago, have a face value (FV) of $1,000, a yield to maturity (YTM) of 12%, and are noncallable.
Are the bonds of Natural Gas Producers Inc. selling at a discount, at par, or at a premium?
What is the current yield on Natural Gas Producers Inc.s outstanding bonds?
Options: 11.87% , 8.07% , 9.17%, 10.09%
What is the expected one-year capital gain yield on the bonds of Natural Gas Producers Inc.?
Options: 1.73% 2.25% 1.91% 1.53%
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