What are ytm and ytc

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a. Company has a bond that matures in 37 years has a par value of $1,000, an annual coupon payment of $189; its market interest rate is 7.7%. What is its price?

b. Company has a bond that matures in 110 years has a par value of $1,000 and an annual coupon of 11%; the market interest rate is 3.6%. What is its price?

c. Company has bonds that currently sell for $525. They have a 35-year maturity, a semi-annual coupon of $90, and a par value of $1,000. What is their yield to maturity?

d. Company has bonds currently sell for $2,975. They pay a 12% coupon semi-annually coupon and have a 32-year maturity, but they can be called in 11 years at $1,780. What are their YTM and their YTC? Are investors more likely to earn YTM or YTC in the problem above?

Reference no: EM132616119

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