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26. A Vulcan bond has a coupon rate of 7%. It pays only in odd years....

26. A Vulcan bond has a coupon rate of 7%. It pays only in odd years. If there are 5 years to mature and the YTM is 6.5%, what is its price?

27. A 5% perpetuity bond has a price of $980. What is its YTM?

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Answer #1

26.

27.

=Coupon payment/current price

=(5%*1000)/980

=5.10%

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