Question
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year
A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9.4%. What is the new price of the bond?
A.
$839
B.
$1,175
C.
$1,007
D.
$1,000
Click to select your answer.
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
