(Bond valuation) Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. The value of the bond is$_________. (Round to the nearest cent.)
(Bond valuation) Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. The value of the bond is$_________. (Round to the nearest cent.)
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 13P
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Question
(
13
years and has a
$1,000
par value. The annual coupon interest rate is
13
percent and the market's required yield to maturity on a comparable-risk bond is
15
percent.
The value of the bond is$_________.
(Round to the nearest cent.)
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