Case study-preston corporation

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Reference no: EM133110423

Preston Corporation has a bond outstanding with a $90 annual interest with a semiannual coupon payment, a market price of $1,086, and a maturity date in 10 years. Assume the par value of the bonds is $1,000. Find the following using Excel functions where needed, show all calculations.

a. The coupon rate or bond rate or nominal yield

b. The current yield.

c. The yield to maturity.

Reference no: EM133110423

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