Question
Ten years ago Bacon Signs Inc. issued twenty-five-year 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have
Ten years ago Bacon Signs Inc. issued twenty-five-year 8% annual coupon bonds
with a $1,000 face value each. Since then, interest rates in general have fallen and
the yield to maturity on the Bacon bonds is now 7%. Given this information, what is
the price today for a Bacon Signs bond?
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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
