Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

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Finance

Even though most corporate bonds in the United States makecoupon payments semiannually, bonds issued elsewhere often haveannual coupon payments. Suppose a German company issues a bond witha par value of €1,000, 10 years to maturity, and a coupon rate of6.8 percent paid annually.
If the yield to maturity is 7.9 percent, what is the currentprice of the bond? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)
A Japanese company has a bond outstanding that sells for 89percent of its ¥100,000 par value. The bond has a coupon rate of5.6 percent paid annually and matures in 18 years.
What is the yield to maturity of this bond? (Do notround intermediate calculations. Enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
Yield to maturity %

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3.6 Ratings (619 Votes)

I Bond price Coupon payments 1 11ini Par value 1 1in Here Par value 1000 i rate semi annual 79 612 months i 395 or 00395 Coupon payments See Answer

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Even though most corporate bonds in the United States makecoupon payments semiannually, bonds issued elsewhere often haveannual coupon payments. Suppose a German company issues a bond witha par value of €1,000, 10 years to maturity, and a coupon rate of6.8 percent paid annually.If the yield to maturity is 7.9 percent, what is the currentprice of the bond? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)A Japanese company has a bond outstanding that sells for 89percent of its ¥100,000 par value. The bond has a coupon rate of5.6 percent paid annually and matures in 18 years.What is the yield to maturity of this bond? (Do notround intermediate calculations. Enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.) Yield to maturity%