Question
Bart Industries has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000 and selling for $1,158.85. At
- Bart Industries has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000 and selling for $1,158.85. At this price the bonds have a YTM of 7%. What is the coupon rate on these bonds?
I have started doing the problem with 2 different equations, but am unsure how to solve. Please show work, thank you.
C= (1,158.85-1000x(1+0.07)-12)/(1-(1+0.07)-12x0.07) =
P = 1,158.85 = C(PVIFA 7%, 12) + 1000(PVIFA 7%, 12)=
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
2nd Edition
1284169030, 978-1284169034
