Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 18 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the YTM is: 7 percent 9 percent 5 percent

Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 18 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the YTM is: 7 percent 9 percent 5 percent

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter6: Bonds (debt) - Characteristics And Valuation

Section: Chapter Questions

Problem 11PROB

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Question

Microhard has issued a bond with the following characteristics:

Par: $1,000

Time to maturity: 18 years

Coupon rate: 7 percent

Semiannual payments

Calculate the price of this bond if the YTM is:

7 percent

9 percent

5 percent

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