Q1. Renfro Rentals has issued bonds that have a 10% coupon rate, payable semiannually. The bonds...

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Q1. Renfro Rentals has issued bonds that have a 10% coupon rate,payable semiannually. The bonds mature in 18 years, have a facevalue of $1,000, and a yield to maturity of 7%. What is the priceof the bonds? Round your answer to the nearest cent.
Q2. The Brownstone Corporation's bonds have 4 years remaining tomaturity. Interest is paid annually, the bonds have a $1,000 parvalue, and the coupon interest rate is 10%.
What is the yield to maturity at a current market price of$889? Round your answer to two decimal places.
What is the yield to maturity at a current market price of$1,113? Round your answer to two decimal places.

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4.4 Ratings (586 Votes)

1Information provided Face value future value 1000 Coupon rate 102 5 Coupon payment 0051000 50 Time 18 years2 36 semiannual periods Yield to maturity 72 350 per semiannual period The price of the bond is calculated by computing the present value of the See Answer

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Q1. Renfro Rentals has issued bonds that have a 10% coupon rate,payable semiannually. The bonds mature in 18 years, have a facevalue of $1,000, and a yield to maturity of 7%. What is the priceof the bonds? Round your answer to the nearest cent.Q2. The Brownstone Corporation's bonds have 4 years remaining tomaturity. Interest is paid annually, the bonds have a $1,000 parvalue, and the coupon interest rate is 10%.What is the yield to maturity at a current market price of$889? Round your answer to two decimal places.What is the yield to maturity at a current market price of$1,113? Round your answer to two decimal places.