What is the quoted price of the bond

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Reference no: EM132065274

1. Kasey Corp. has a bond outstanding with a coupon rate of 5.9 percent and semiannual payments. The bond has a yield to maturity of 4.9 percent, a par value of $1,000, and matures in 21 years. What is the quoted price of the bond?

2. You are considering the purchase of an apartment building that has 25 units that can be rented out at $1,500 per month. You have estimated operating expenses and expected vacancy and collection losses for the first year to be $55,000 and $50,000, respectively. You also have estimated that you will be able to generate an additional $7,500 in the first year from garage rentals on the property. If the expected purchase price of the property is $3,250,000 and you are planning on making a 20% down payment, calculate the debt yield ratio assuming the interest rate is 6%.

Reference no: EM132065274

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