Mark Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of 4 years, a par value of $1,000, and a yield to maturity of 7.50%. The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of 6.326% paid annually. The second bond, issued by Malfoy Enterprises, has a coupon interest rate of 8.80% paid annually. a. The selling price for the Crabbe Waste Disposal bond is $____(Round to the nearest cent.) The selling price for the Malfoy Enterprises bond is $____(Round to the nearest cent.)
Mark Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of 4 years, a par value of $1,000, and a yield to maturity of 7.50%. The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of 6.326% paid annually. The second bond, issued by Malfoy Enterprises, has a coupon interest rate of 8.80% paid annually.
a. The selling price for the Crabbe Waste Disposal bond is $____(Round to the nearest cent.)
The selling price for the Malfoy Enterprises bond is $____(Round to the nearest cent.)
b. The number of Crabbe Waste Disposal bond issues Mark could purchase is ____ issues. (Round down to the nearest whole number.)
The number of Malfoy Enterprises bond issues Mark could purchase is ____ issues. (Round down to the nearest whole number.)
c. The yearly interest income of the Crabbe Waste Disposal bond is $ (Round to the nearest cent.)
The yearly interest income of the Malfoy Enterprises bond is $ (Round to the nearest cent.)
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