Question
Kasey Corp. has a bond outstanding with a coupon rate of 5.82 percent and semiannual payments. The bond has a yield to maturity of 6.9
Kasey Corp. has a bond outstanding with a coupon rate of 5.82 percent and semiannual payments. The bond has a yield to maturity of 6.9 percent, a par value of $2,000, and matures in 24 years. What is the quoted price of the bond?
PV = $58.20{[1 (1/1.034548)]/.0345} + $2,000/1.034548 PV = $1,748.41
Quoted price = $1,748.41/$2,000 100 = 87.42
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
