Question
Suppose that General Electric has a bond issue that has 8.00 years until maturity. The bond pays a 6.00% annual coupon rate with semi-annual coupons,
Suppose that General Electric has a bond issue that has 8.00 years until maturity. The bond pays a 6.00% annual coupon rate with semi-annual coupons, and has a face value of $1,000. If investors currently want a 4.00% annual return (APR) to hold the bond, what is the trading price of the bond today?
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
