Face-value securities has the lowest yield to maturity

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Reference no: EM131841882

1. Calculate the value (price) of a $5,000 par value bond which pays quarterly interest at an annual coupon rate of 6.02% and has 12 years until maturity. The yield on similar risk bonds is currently 6.95% (nominal annual with quarterly compounding).

2. Which of the following $1,000 face-value securities has the lowest yield to maturity? A) a 5 percent coupon bond selling for $1,000 B) a 10 percent coupon bond selling for $1,000 C) a 15 percent coupon bond selling for $1,000 D) a 15 percent coupon bond selling for $900.

Reference no: EM131841882

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