A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 5.1% and pays coupon twice a year. The annual market interest rate for similar bonds is 3%. What is the price of the bond (in $)
A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 5.1% and pays coupon twice a year. The annual market interest rate for similar bonds is 3%. What is the price of the bond (in $)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 1P
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A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 5.1% and pays coupon twice a year. The annual market interest rate for similar bonds is 3%.
What is the price of the bond (in $)?
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