Face value bonds outstanding

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1. Global Trade, Inc. has $1,000 face value bonds outstanding with a market price of $1,013. The bonds pay interest annually, mature in 11 years, and have a yield to maturity of 5.34 percent. What is the current yield?

5.39 percent

5.43 percent

5.50 percent

5.61 percent

5.77 percent

2. Best Lodging has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 5 years, and have a 6 percent coupon. The current price is quoted at 101. What is the yield to maturity?

5.77 percent

5.84 percent

6.00 percent

6.13 percent

6.27 percent

Reference no: EM132008746

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