A 7% semiannual coupon bond matures in 4 years. The bond has a face value of...

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Finance

A 7% semiannual coupon bond matures in 4 years. The bond has aface value of $1,000 and a current yield of 7.3432%.

What is the bond's price? Do not round intermediate calculations.Round your answer to the nearest cent.
$ 773.53 (NOT CORRECT)
What is the bond's YTM? (Hint: Refer to Footnote 7 forthe definition of the current yield and to Table 7.1.) Do not roundintermediate calculations. Round your answers to two decimalplaces.
7.14 % (NOT CORRECT)
Calculation of Current Yields, Capital Gains Yields, and TotalReturns for 7%, 10%, and 13% Coupon Bonds When the Market RateRemains Constant at 10%
Please do not answer if you are unsure, thank you!

Answer & Explanation Solved by verified expert

4.1 Ratings (555 Votes)

1 7 Semiannual bondFace value 1000 Semiannual coupon 72 351000 35Current yield 73432 Semiannual yield See Answer

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A 7% semiannual coupon bond matures in 4 years. The bond has aface value of $1,000 and a current yield of 7.3432%.What is the bond's price? Do not round intermediate calculations.Round your answer to the nearest cent.$ __773.53 (NOT CORRECT)What is the bond's YTM? (Hint: Refer to Footnote 7 forthe definition of the current yield and to Table 7.1.) Do not roundintermediate calculations. Round your answers to two decimalplaces.__7.14 % (NOT CORRECT)Calculation of Current Yields, Capital Gains Yields, and TotalReturns for 7%, 10%, and 13% Coupon Bonds When the Market RateRemains Constant at 10%Please do not answer if you are unsure, thank you!