What is current price of the bonds

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1. GGG Incorporated issued 20 year, non-callable, 7.5% annual coupon bonds at their par value of $1000 on year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?

2. DDD Incorporated bonds currently sell for $1040 and have a par value of $1000. They pay a $65.00 annual coupon and have a 15 year maturity. They can be called in 5 years at 1100. What is their yield to maturity? a. 5.78% b. 6.09% c. 6.39% d. 6.71% e. 7.05% f. 6.39%

Reference no: EM131851279

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