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
