A Ford Motor Co. coupon bond has a face value of $100, a coupon rate of 4%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 10 years from tomorrow. The yield on the bond issue is 4.636​%. What is the fair price for the bond today?

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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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A Ford Motor Co. coupon bond has a face value of $100, a coupon rate of 4%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 10 years from tomorrow. The yield on the bond issue is 4.636​%. What is the fair price for the bond today? 

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