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P16-1 Garland Corporation has a bond outstanding with a $90 annual interest payment, a market price of $820, and a maturity date in five years. Find the following


P16-1 Garland Corporation has a bond outstanding with a $90 annual interest payment, a market price of $820, and a maturity date in five years. Find the following:

a. The coupon rate
b. The current rate
c. The approximate yield to maturity


SOLUTION PREVIEW
Coupoun Rate = annual interest payment/ Face value of bonds
annual interest =
90
Face value =
1000


File name: P16-1-Garland-Corporation.xls File type: application/vnd.ms-excel Price: $7