Podalic, Inc., has 10% percent coupon bonds on the market with 14 years left to maturity. The bonds make semi-annual payments and have a par value of $1,000. If the bonds have a yield to maturity of 12 percent, what is the price? Select one: a.$895,94 b.$815.59 c.$796.31 d.$865.94

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Podalic, Inc., has 10% percent coupon bonds on the market with 14 years left to maturity. The bonds make semi-annual payments and have a par value of $1,000. If the
bonds have a yield to maturity of 12 percent, what is the price?
Select one:
a.$895.94
b.$815.59
c.$796.31
d.$865.94
Transcribed Image Text:Podalic, Inc., has 10% percent coupon bonds on the market with 14 years left to maturity. The bonds make semi-annual payments and have a par value of $1,000. If the bonds have a yield to maturity of 12 percent, what is the price? Select one: a.$895.94 b.$815.59 c.$796.31 d.$865.94
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