what is the par value of the bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...
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A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to yield 7.5% convertible semi-annually. If the purchase price is P 6,750, what is the par value of the bond?

a) P 6,130.08

b) P 5,816.44

c) P 6,209.11

d) P 5,750.45

 
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