What is the yield to maturity on the bonds

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Reference no: EM132011816

1. Assume that you wish to purchase a 30-year bond that has a maturity value of $1,000 and a coupon interest rate of 9.5%, paid semiannually. If you require a 6.75% rate of return on this investment, what is the maximum price that you should be willing to pay for this bond?

2. (Expected rate of return and current yield) Time Warner has bonds that are selling for $ 1,197. The coupon interest rate on the bonds is 10.90 percent and they mature in 17 years. What is the yield to maturity on the? bonds? What is the current yield? a. The yield to maturity on the bond is? (Round to two decimal places.)

Reference no: EM132011816

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