Return to Site 1 2 (3 of 25) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Based on the information provided above, what will be the price of the bond? O $1,236.62 O $2,152.93 O $626.23 O $2,419.70 O None of the answers provided is correct. 18 19 20 21 22 23 24 25 Josiah Trampolines, Inc. will soon be offering a new issue of corporate bonds. The issue will offer a coupon rate of 12.5% paid semi-annually and maturing in 30 years with a face value of $1,000. The yield on similar bonds in the market is currently 10%. Josiah recently paid $6.25 per share as a dividend and expects the dividends to grow indefinitely by 3.75%. Equity Investors demand a rate of return of 8.75% on the stock.

Josiah Trampolines, Inc. will soon be offering a new issue of corporate bonds. The issue will offer a coupon rate of 12.5k paid semi-annualy and maturing in 30 years with a foce value of $1,000, The yield on similar bonds in the market is currently 10h. josiah recently paid $6.25 per share as a dividend and expects the dividends to grow indefinitely by 375 a Fetwity investors demand a rate of recurn of 8.75% on the stoch. Based on the information provided above, what wil be the price of the bond? 51,236.62 $2,152,93 $626.23 $2.419,70 None of the answers provided is correct