FV: $1000

Coupon Rate : 8%

YTM: 6.2%

Time to maturity : 15 years

PARTA 10 Marks While the company's bonds recently traded on the secondary market at a selling price of 125% of par. The Finance Manager is trying to ascertain if this was a reasonable price given current market conditions and the company's credit ratings. Details of the company's bond are provided below: Coupon Rate: Time to Maturity: Frequency of interest payments: 8% 15 years Quarterly Required: Given a current yield to maturity of 6.2%, how much should an investor be willing to pay for $1,000 face value of this bond? 1 (10 Marks)