Business, 18.08.2021 01:20 ChessieGiacalone

Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation. The $1,000 par value bond pays 6 percent annual interest and has 15 years remaining to maturity. The current yield to maturity on similar bonds is 14 percent. Required:
a. What is the current price of the bonds?
b. By what percent will the price of the bonds increase between now and maturity?

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Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are tradi...

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