Current market prices

Determine the current market prices of the following $1,000 bonds if the comparable rate is 10% and answer the questions.
XY 5 ¼ percent, with interest paid annually for 20 years.
AB 14 percent, with interest paid annually for 20 years.
Which bond has a current yield that exceeds the yield to maturity?
Which bond may you expect to be called? Why?
If CD, Inc. has a bond with a 5 ¼ percent coupon and a maturity of 20 years but which was lower rated, what would be its price relative to the XY, Inc. bond? Explain.
emme35
Asked Nov 22, 2009
Erm... 5?
Jouisa1993
Answered Feb 25, 2015

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