Bond Assignment
Eliza Mok spots two bonds out there wherein she is . The primary bond is a 20-year bond issued by Orange Ltd two years in the past with a coupon price of four.9%. The second bond is a 10-year bond issued by Pear Ltd one 12 months in the past at a coupon price of 5.1%. Each bonds have a pa r worth of $1,000 and make semiannual funds. a. If the yield to maturity (YTM) on the Orange bond is 5.zero%, what's the present bond worth? b. If the Pear bond at the moment sells for 102% of par worth, what's the YTM? c. Eliza wonders why some bonds are promoting at premium over par worth whereas different bonds promote at low cost or at par. Clarify. Get Finance homework help at present