Question
Bold Corporation issued bonds on April 1,2010 with a 3% coupon for the first 5 years (until 2015), a 3.5% coupon for the next 4
Bold Corporation issued bonds on April 1,2010 with a 3% coupon for the first 5 years (until 2015), a 3.5% coupon for the next 4 years (until 2019), 4% coupon for the following 5 years (until 2024) and 4.5% coupon for the following 9 years (until 2033) until it matures on April 1, 2033. The interest on these bonds is paid and compounded semi-annually. Original Graph in Years when issued April 1, 2010 You buy the bond on April 1, 2014. Determine the value (price) of a $1000 Bold Corporation bond as of April 1, 2014. The bond yield on this date was 4% and Stock yield was 6%. The bond will be held until maturity. Interest is paid SEMI-ANNUALLY
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