I need help to determine what formula to use to answer this question...2. Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity isa. 7 percent.b. 10 percent.c. 13 percent.
I need help to determine what formula to use to answer this question...
2. Midland Oil has $1,000 par value bonds outstanding at 8 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is
a. 7 percent.
b. 10 percent.
c. 13 percent.
Expert Answer
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