Current price of bond General Electric 30-year bonds have a 7.5%annual coupon rate and a par value of $10,000.If their required rate of return is 6.25% peryear, what should the price of their bonds be?

In this question we require to compute the current price of the bond (PV) from below details: Par…

Answered: General Electric 30-year bonds have a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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General Electric 30-year bonds have a 7.5% annual coupon rate and a par value of $10,000. If their required rate of return is 6.25% per year, what should the price of their bonds be?