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FIN - In March 2008, Abbott, Inc. issued $100 million in bonds

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Question;In March 2008, Abbott, Inc. issued $100 million in bonds. These bonds originally had a 25 year maturity, a 7.5% coupon rate and annual interest payments on a $1,000 Par value. When they originated, the bonds sold at par. Since origination, the required rate of return on Abbott bonds has hovered between a low of 6.35% to a high of 9.5% and currently has a yield to maturity of 6.5%. What is the current yield for Abbott?

 

Paper#48588 | Written in 18-Jul-2015

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