What is the nominal annual current yield

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Reference no: EM131851243

Suppose Coca-Cola sold an issue of bonds with a 30-year maturity, $2300 par value, a 13% coupon rate, and semi-annual interest payments. a) Three years after the bonds were issued, the going interest rate on bonds such as these fell to 9%. At what price would the bonds sell? b) Suppose that, three years after the bond’s issue, the going rate of interest had risen to 17%. At what price would the bonds sell? c) Three years after bonds were issued, the closing price of the bond is $2,250. What is the nominal annual current yield?

Reference no: EM131851243

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