What is the current yield on bonds

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Reference no: EM131989947

1. Capital Corp. has 6.4 percent coupon bonds on the market. The bonds currently sell for 110 percent of par. What is the current yield on the bonds?

a. 0.64 %

b. 5.82 %

c. 7.04 %

d. 6.40 %

2. Bruin Co. wants to issue a new 10-year bonds to support its expansion plans. The company currently has 10.2 percent coupon bonds on the market that sell for $1,075, make semiannual payments and mature in 10 years. The face value of the bond is $1,000. What approximate coupon rate should the company set on its new bonds if it wants to sell at a par?

a. 9.1 percent

b. 10.6 percent

c. 10.9 percent

d. 8.8 percent

e. 9.9 percent

Reference no: EM131989947

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