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goldswan130Lv1
28 Sep 2019
The Corp. has issued 18-year, 8% semi-annual coupon, noncallablebonds at their par value of $1,000 one year ago. Today, the marketinterest rate on these bonds is 4.5%. What is the current price ofthe bonds? (Hint: the bonds have 17 years to maturity now).
The Corp. has issued 18-year, 8% semi-annual coupon, noncallablebonds at their par value of $1,000 one year ago. Today, the marketinterest rate on these bonds is 4.5%. What is the current price ofthe bonds? (Hint: the bonds have 17 years to maturity now).
Nelly StrackeLv2
28 Sep 2019
Related questions
One year ago Lerner and Luckmann Co. issued 15-year,noncallable, 5% annual coupon bonds at their par value of $1,000.Today, the market interest rate on these bonds is 5.5%. What is thecurrent price of the bonds, given that they now have 14 years tomaturity?
Select the correct answer.
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