Assume the following information for the next two questions: Texas Republic, Inc. has issued a 5%...

Assume the following information for the next two questions: Texas Republic, Inc. has issued a 5% fixed annual coupon bond with 20 years to maturity having a $1,000 par value currently priced at $788.11.

3. What is the yield to maturity for Texas Republic’s bond?

A. 7% B. 9% C. 7.72% D. 11% E. 3.5%

4. If you purchase Texas Republic’s bond and sell it after 12 years, what is the price you will sell it at assuming market rates have not changed?

A. $735.37

B. $880.57

C. $775.45

D. $1,129.26

E. $1,000

Solutions

Expert Solution

3. Ans is A. 7%

4. Ans is B. $ 880.57%

Please upvote if the ans is helpful..In case of doubt,do comment. Thanks.

jeff jeffy answered 1 year ago

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