Question
Exodus Limousine Company has $1,000 par value bonds outstanding at 11 percent interest. The bonds will mature in 30 years with annual payments. Compute the
Exodus Limousine Company has $1,000 par value bonds outstanding at 11 percent interest. The bonds will mature in 30 years with annual payments.
Compute the current price of the bonds if the current yield to maturity is: (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answers to 2 decimal places.)
| Price of the bond | ||
| a. 6 percent | $ | |
| b. 16 percent | $ | |
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Investments An Introduction
Authors: Herbert B Mayo
10th Edition
0538452099, 9780538452090
