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Stark Corporation issued bonds at $1,000 per bond.The bonds had a 35 year life with a coupon rate of 8% paid annually.Assume 10 years later,
Stark Corporation issued bonds at $1,000 per bond.The bonds had a 35 year life with a coupon rate of 8% paid annually.Assume 10 years later, due to bad publicity, the risk premium for the bonds have caused the risk premium to increase the overall market yields to 11%.The bonds have 25 years remaining until maturity.Compute the new price of the bond.Round to 2 decimal places.
Question 1 options:
$633.50
$587.62
$747.35
$686.27
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