Westco Company issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current price of the bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...
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Westco Company issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The
bonds make semiannual payments and have a par value of $1,000. If the YTM on these
bonds is 4.5 percent, what is the current price of the bond in dollars? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current bond price
Transcribed Image Text:Westco Company issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current price of the bond in dollars? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price
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