Bond price and the overall credit worthiness of bond

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Reference no: EM131872363

1. Explain (theoretically) the relationships between current yield, bond price and the overall credit worthiness of a bond.

2. Springfield Nuclear Energy Inc. bonds are currently trading at ?$908.48. The bonds have a face value of ?$1,000?, a coupon rate of 4.5?% with coupons paid? annually, and they mature in 20 years. What is the yield to maturity of the? bonds?

3. If you wanted to retire with $4million and you are currently 30 years old, then at an interest rate of 17% what would your monthly payments be if you wanted to retire by 60 years old? (Assume interest compounds monthly).

Reference no: EM131872363

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