Business
Business, 03.01.2021 01:00, angelinararr5783

One year ago, ABC Widgets, Inc., funded an expansion to its manufacturing facilities by issuing a 20-year first mortgage bond. The bond is secured by the new building and land. The bond was issued with a 5.5% coupon and is currently rated Aa. The current market price of the bond is 105 resulting in a current yield of approximately A) 4.99%. B) 5.24%. C) 5.50%. D) 5.61%.

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