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A firm has just issued (on January 1, 2017) a bond that has a face value of $1,000, a coupon rate of 6 percent paid
A firm has just issued (on January 1, 2017) a bond that has a face value of $1,000, a coupon rate of 6 percent paid semi-annually (on June 30 and December 31), and matures in 8 years. The bonds were issued with a yield to maturity of 7%. What price were the bonds issued at? Assume that on July 1, 2019, the bond trades to earn an effective annual yield of 8%. At what price should this bond be trading for on July 1, 2019? (5 marks) please use financial calculator
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