The yield be on corporate bond with similar characteristics

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1- Kessel Inc. offers a zero-coupon bond that has 15 years to maturity and the yield-to-maturity of similar bonds is 4%. What is the market price of Kessel Inc.'s bond?

2- A Chicago, Illinois municipal bond has a maturity date in 20 years, offers a 6.5% coupon rate, and is currently priced at $1,039. If bond investors face a average tax rate of 28%, what would the yield be on a corporate bond with similar characteristics?

3- Jakku Corp. bonds bearing a coupon rate of 2%, pay coupons seminannually, have four years remaining to maturity, and are currently priced at $970 per bond. What is the yield to maturity?

Reference no: EM131298275

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