What yield you should be expecting-black forest

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Black Forest Corporation (BF) issued a bond that matures in 10 years with face value $1,000. The bond pays 7% annual coupon and it is priced today at $900.

What yield you should be expecting?

White Forest Corporation (WF) bonds also have maturity of 10 years with face value $1,000, and it is selling at premium to par. WF bonds are viewed by investors as having the same risk as BF. What can you say about WF's coupons

Reference no: EM132537808

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