Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 23 years Coupon
Question:
Microhard has issued a bond with the following characteristics:
Par: $1,000
Time to maturity: 23 years
Coupon rate: 7 percent
Semiannual payments
Calculate the price of this bond if the YTM is
a. 7 percent
b. 9 percent
c. 5 percent
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Step by Step Answer:
The price of any bond is the PV of the interest payments plus the PV of the par value Notice this pr...View the full answer
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Related Book For 
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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