Company RS’s bonds outstanding have a coupon rate of 6% and semiannual payments. If the YTM on this bond is 7.9%, and considering that the face value of each bond is $10,000, calculate the price of these bonds if the maturity will happen exactly 26 years from now.
Company RS’s bonds outstanding have a coupon rate of 6% and semiannual payments. If the YTM on this bond is 7.9%, and considering that the face value of each bond is $10,000, calculate the price of these bonds if the maturity will happen exactly 26 years from now.
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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Company RS’s bonds outstanding have a coupon rate of 6% and semiannual payments. If the YTM
on this bond is 7.9%, and considering that the face value of each bond is $10,000, calculate the
price of these bonds if the maturity will happen exactly 26 years from now.
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