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Given the following information quoted from yahoo.Finance​ (or Wall Street journal bond​ section) for today and...

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Finance

Given the following information quoted from yahoo.Finance​ (orWall Street journal bond​ section) for today and given in thefollowing table.

Assume that Today is February​ 15, 20092009

Type

Issue

Date

Price

Coupon

Rate

Maturity

Date

YTM

Current

Yield

Rating

Bond

Aug 2003

−

7.007.00​%

​8-15-2018

6.000​%

−

AAA

What is the price of this bond​ (assume a 1,000 par value​)?What is the current yield of this​ bond?   

​Hint: Make sure to round all intermediate calculations to atleast six decimal places. Final answer to be rounded to twodecimals.

What is the price in dollars of the August 2003 ​bond? ​(Do notenter a​ $ sign. Use commas to separate thousands and use twodecimals. Round to the nearest cent. For​ example, if the price youobtained is​ $1,187.659321 then enter ​1,187.66​)

What is the currrent yield of the August 2003 ​bond? ​(Round totwo decimal places. You must enter answer in percentagedenomination. For example if the answer you obtained is 0.05247then enter 5.25​)

Answer & Explanation Solved by verified expert
4.5 Ratings (619 Votes)
Price of a bond is the present value of its cash flowsdiscounted at the YTMCash flows of a bond are its coupon payments    See Answer
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