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Linda_us, Finance, Accounts & Homework Tutor
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The Reynolds Corporation issued $1,000 thirty-year bonds which

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The Reynolds Corporation issued $1,000 thirty-year bonds which pay $120 annually in interest. The bonds currently sell at par.
(a) What is the coupon rate?
(b) What is the current price of the bonds?
(c) What is the current yield?
(d) What is the yield to maturity?
Submitted: 7 years ago.
Category: Homework
Expert:  Linda_us replied 7 years ago.

HiCustomerbr />
a) Coupon Rate is (120/1000) * 100 = 12%
b) Current Price is $1000
c) Current Yield is (120/1000) * 100 = 12%
d) Yield to Maturity = 12%


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Edited by linda_us on 10/13/2009 at 10:33 PM EST
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Customer: replied 7 years ago.
Can you include an explanation/formulas used? Thanks!
Expert:  Linda_us replied 7 years ago.

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