Question
Bond prices and maturity dates . Les Company is about to issue a bond with quarterly coupon payments, an annual coupon rate of 15%, and
Bond prices and maturity dates. Les Company is about to issue a bond with quarterly coupon payments, an annual coupon rate of 15%, and a par value of $5,000. The yield to maturity for this bond is 12%.
a.What is the price of the bond if it matures in 15, 20, 25, or 30 years?
b.What do you notice about the price of the bond in relationship to the maturity of the bond?
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HBR Guide To Finance Basics For Managers
Authors: Harvard Business Review
1st Edition
1422187306, 978-1422187302
