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Missing information on a bond. Your broker faxed to you the following information about two semiannual coupon bonds that you are considering as a potential
Missing information on a bond. Your broker faxed to you the following information about two semiannual coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following: IBM Coupon Bond $5,000 AOL Coupon Bond $1,000 11.5% ? Features Face value (Par) Coupon rate Yield to maturity. Years to maturity Price 8.5% 11.5% 20 30 2 $790.20 Fill in the missing data from the information that the broker sent What is the price of the IBM coupon bond? (Round to the nearest cent.)
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