Question
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 9 percent and the market's required yield
A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 9 percent and the market's required yield to maturity on a comparable-risk bond is 18 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually? ROUND TO NEAREST CENT FOR BOTH ANSWERS!
a. The value of this bond if it paid interest annually would be $ ___. (Round to the nearest cent.)
b. The value of this bond if it paid interest semi-annually would be $___. (Round to the nearest cent)
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Fundamentals of Financial Management
Authors: Eugene F. Brigham
Concise 9th Edition
1305635937, 1305635930, 978-1305635937
