Bluff Enterprises has $1,000 face value bonds outstanding. Thesebonds pay intere
ID: 2771049 • Letter: B
Question
Bluff Enterprises has $1,000 face value bonds outstanding. Thesebonds pay interest semiannually, mature in 6 years, and have a 7percent coupon. The current price is quoted at 101.36. What is theyield to maturity?a. 5.97 percent
b. 6.49 percent
c. 6.72 percent
d. 6.86 percent
e. 7.11percent
A 6 percent $1,000 bond matures in 4 years, paysinterest semiannually, and has a yield to maturity of 6.85 percent.What is the current market price of the bond?
a. $768.76
b. $801.38
c. $869.15
d. $910.27
e. $970.69
is e correct??
Explanation / Answer
A 6 percent $1,000 bond matures in 4 years, pays interestsemiannually, and has a yield to maturity of 6.85 percent. What isthe current market price of the bond? a. $768.76 b. $801.38 c. $869.15 d. $910.27 e. $970.69 i am sure 970.69 is the right answer. Don't forget to rate if it is helpful.