The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will
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Question:
The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 30 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Compute the current price of the bonds if the present yield to maturity is. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)
8% price of the bond is $1112.58
13% price of the bond is $700.17
WHAT IS 7% price of the bond is?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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