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The Sanders Company has one bond issue outstanding. The bonds have a face value of $1000 and mature 20 years from now. The bonds pay
The Sanders Company has one bond issue outstanding. The bonds have a face value of $1000 and mature 20 years from now. The bonds pay an annual coupon rate of 6.7% and coupon payments are made semiannually. U.S. Government bonds with the same maturity are currently trading at a yield to maturity of 7.3%. Sanders' bonds are rated A by Moody's and the average credit spread on A-rated debt is 1.0%. If the next coupon payment will happen six months from now, what is the price of one Sanders' bond today
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