Question
7 years ago Skysong Corporation issued 20-year bonds that had a $800 face value, paid interest annually, and had a coupon rate of 9 percent.
7 years ago Skysong Corporation issued 20-year bonds that had a $800 face value, paid interest annually, and had a coupon rate of 9 percent. If the market rate of interest is 5.5 percent today, what is the current market price of an Skysong Corporation bond? Are these bonds selling at a premium or discount?
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
