Question
On January 1, 2019, Company E issues $1 million of 8% coupon bonds due January 1, 2034.These bonds pay interest semiannually.If the yield to maturity
On January 1, 2019, Company E issues $1 million of 8% coupon bonds due January 1, 2034.These bonds pay interest semiannually.If the yield to maturity on the bonds is 7%, what is the selling price of the bonds?
PV of interest payments: ?_________________
PV of maturity amount:?_______________
Present price of the bond:?____________
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
