What is the yield to call and bond price

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Reference no: EM131323319

1. Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 6.20%, based on semiannual compounding. What is the bond’s price?

a. $1,047.19

b. $1,074.05

c. $1,101.58

d. $1,129.12

e. $1,157.35

2. High Inc's bonds currently sell for $1,275 and have a par value of $1,000. They pay a 10 percent annual coupon and have a 20-year maturity, but they can be called in 5 years at call price of $1,120. What is the yield to call?

5.67% b. 5.78% c. 6.12% d. 7.34%

Reference no: EM131323319

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