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Levi Strauss & Company has an outstanding B-rated bond that has a coupon rate of 12.25%,...

Levi Strauss & Company has an outstanding B-rated bond that has a coupon rate of 12.25%, a face value of $1000 and is currently priced at $1117.50. If this bond pays interest semi-annually and matures in 4 years,

  1. (5 pts) what is its yield to maturity (YTM)?
  2. (1 pts) Is this bond sold at a premium? Explain.
  3. (2 pts ) What is its current yield?
  4. (2 pts) What would happen to the price of this bond if the real interest rate increases?

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jeff jeffy answered 3 weeks ago
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