ASF an investor owns bonds issued by ABC & Company. The bonds pay 140 in interest annually which 14 % of the face value the bonds are redeemed in 10 year their current market price is 6% higher than their face value according to interest rate
Reg. calculate the current yield to maturity on this bonds ( 04 marks )
Q# 2-B ) ASF has two preferred stock issue outstanding preferred stock in the first issued have a dividend rate of 7.50 per share which is equal to 10 % of their selling price the stock in the second issue are similar in risk to the preferred stock in the first issue expect that dividend rate is 10% higher than as compare to first issue calculate the value per share of the preferred stock in the second issue
