AND $1,500 AT THE END OF YEAR 4, V. PAY $1,200 AT THE END OF YEAR 3...

3, and $1,500 at the end of year 4, V. Pay $1,200 at the end of year 3 and $1,500 at the end of year 5 A) IB) II C) III D) IV E) V Please use the following information to answer Questions 11 – 14. In 2004, Target Ltd. issued $50 million worth of bonds at par with a coupon rate of 6%, with semi-annual interest payments and a maturity of 10 years. In 2008, due to the credit crunch, the yield to maturity of the Target bonds increased to 8%. In 2009, Buyer Corp. announced a friendly takeover of Target Ltd. and the yield to maturity of the bonds decreased to 7%.