FIN 4414 – ABC has issued a bond with the following characteristics
QUESTION 1 QUESTION 5ABC has issued a bond with the following characteristics:Par: $1,000;Time to maturity: 11 years;Coupon rate: 10%;Assume annual coupon payments.Calculate the price of this bond if the YTM is 11.4%You paid $1,185 for a corporate bond that has a 11.45% coupon rate. What is the current yield? Hint: if nothing is mentioned, then assume par value = $1,000 Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.QUESTION 4 ABC’s Inc.’s bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)?