Assume a par value of $1,000. Caspian Sea plans t issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.00%. If the yield to maturity for the bond is 7.0%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans t issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.00%. If the yield to maturity for the bond is 7.0%, what will the price of the bond be?

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 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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#22
Assume a par value of $1,000. Caspian Sea plans to
issue a 11.00 year, semi-annual pay bond that has a
coupon rate of 7.00%. If the yield to maturity for the
bond is 7.0%, what will the price of the bond be?
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Answer format: Currency: Round to: 2 decimal places.
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