question archive 1) BC Corporation has 7 percent coupon bonds on the market with 16 years left to maturity
1) BC Corporation has 7 percent coupon bonds on the market with 16 years left to maturity
Subject:FinancePrice: Bought3
1) BC Corporation has 7 percent coupon bonds on the market with 16 years
left to maturity. The bonds make annual payments. These bond currently sell for $1084.60, what is its YTM?
2) Find the current market value of a 30-year, zero coupon bonds that
yield 8.5 percent. (Assume semi-annual compounding.)
3) A municipal bond has a yield of 6% while a corporate bond yields 7
percent. If you are in the 30 percent tax bracket, which bond would you prefer to buy and why? At what tax rate would you be indifferent between these two bond yields?
