8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of $80 and sells for $950. (LO6-2) a. What is its coupon rate'? b. What is its yield to maturity? c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond offer?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of
$80 and sells for $950. (LO6-2)
a. What is its
b. What is its yield to maturity?
c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond
offer?
coupon
rate?
Transcribed Image Text:8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of $80 and sells for $950. (LO6-2) a. What is its b. What is its yield to maturity? c. If Circular wants to issue a new 6-year bond at face value, what coupon rate must the bond offer? coupon rate?
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