Blue water homes have 8 percent bonds outstanding that


1. Blue Water Homes have 8 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually. These bonds have a par value of $1,000 and are callable in 2 years at a premium of $75. What is the yield to call if the current price is equal to 103.25 percent of par?

 7.51 percent

 7.70 percent

 8.06 percent

 8.98 percent

 9.66 percent

2. A $1,000 semiannual coupon bond matures in 15 years, has a coupon rate of 7.5 percent, and a market price of $982. What is the yield to maturity?

 3.86 percent

 4.01 percent

 4.08 percent

 7.53 percent

 7.70 percent

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Blue water homes have 8 percent bonds outstanding that
Reference No:- TGS02374881

Expected delivery within 24 Hours