Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well
Fantastic news! We've Found the answer you've been seeking!
Question:
Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are trading at well below par value. He has his eye on a bond issued by the Leisure Time Corporation. The $1,000 par value bond pays 6 percent annual interest and has 15 years remaining to maturity. The current yield to maturity on similar bonds is 10 percent. UseAppendix BandAppendix Dfor an approximate answer but calculate your final answer using the formula and financial calculator methods.
a.What is the current price of the bonds?(Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
Posted Date: