Question
Gromans Corporation issued 15-year, non-callable, 9.5% annual coupon bonds at their par value of $1,000 three years ago. Today, the market interest rate on these
Gromans Corporation issued 15-year, non-callable, 9.5% annual coupon bonds at their par value of $1,000 three years ago. Today, the market interest rate on these bonds is 6.5%. What is the current price of the bonds, given that they now have 12 years to maturity?
| A | $1,322.04 | |
| B | $1,684.21 | |
| C | $1,044.62 | |
| D | $1,244.76 | |
| $1,282.08 |
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
