Question
ABC Inc. bonds have a $1,000 face value. The promised annual coupon is $66. The bonds mature in 10 years. There are 10 coupon payments
ABC Inc. bonds have a $1,000 face value. The promised annual coupon is $66. The bonds mature in 10 years. There are 10 coupon payments of $66 each starting a year from now, and the last payment 10 years from now is coupon plus face.
The market's required return for these bonds is 8%. What is the price of these bonds?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
