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Southeastern Wins Another Title (SWAT) issued a bond with 11.00 years until maturity. The bond pays an annual coupon of 7.25% with a face value
Southeastern Wins Another Title (SWAT) issued a bond with 11.00 years until maturity. The bond pays an annual coupon of 7.25% with a face value of $1,000.00. Investors wanted a 6.42% yield to maturity on this bond when it was first issued.
Lets assume that the riskiness of the bond does not change in the first year after issue. Investors still seek the same yield to maturity. What is the price of the bond immediately after the first coupon payment?
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Answer format: Currency: Round to: 2 decimal places.
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