Yield-to-maturity on the date

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The Pennington Corporation issued bonds on January 1, 1987. The bonds were sold at par, had 12% annual coupon, paid semi-annually, and mature on December 31, 2016.

A) What was the yield-to-maturity on the date the bonds were issued?

B) What was the price on January 1, 1992, assuming interest rates have fallen to 10%?

C) Find the current yield, capital gains/losses yield and total yield on January 1, 1992?

Reference no: EM131037387

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