Question
New Creation Company is about to issue a bond with semi-annual coupon payments, a coupon rate of 6.5%, and par value of $1,000. The yield-to-maturity
New Creation Company is about to issue a bond with semi-annual coupon payments, a coupon rate of 6.5%, and par value of $1,000. The yield-to-maturity for this bond is 7%. What is the price of the bond if the bond matures in 25 years? [Show all steps, workings, and formula(s) clearly. Round final answer to two decimal places, where applicable.]
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The Bank Credit Analysis Handbook
Authors: Jonathan Golin, Philippe Delhaise
2nd Edition
0470821574, 978-0470821572
