What was the ytm on pennington bonds

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Reference no: EM132032615

The Pennington Corporation issued a new series of bonds 23½ years ago. The bonds were sold at par value, which is $1,000, have a 12 percent coupon, and mature 6½ years from today. Coupon payments are made semiannually (on June 30 and December 31).

a. What was the YTM on Pennington’s bonds when they were issued?

b. Suppose that the bonds currently sell for $916.42. What is the bond’s YTM?

Reference no: EM132032615

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