Question
Bond prices and maturity dates . Moore Company is about to issue a bond with quarterly coupon payments, an annual coupon rate o f 10
Bond prices and maturity dates. Moore Company is about to issue a bond with quarterly coupon payments, an annual coupon rate of 10%, 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 10, 15, 20, and 25 years?
B) What do you notice about the price of the bond in relationship to the maturity of thebond?
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
