Question
The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 9 percent interest with annual payments. The current yield to maturity on
The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 9 percent interest with annual payments. The current yield to maturity on such bonds in the market is 12 percent. Use Appendix B and Appendix D.
Compute the price of the bonds for these maturity dates: (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to 2 decimal places.)
| Price of the bond | |
| a. 30 Years | $ |
| b. 25 Years | $ |
| c. 6 Years | $ |
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Offshore Finance And State Power
Authors: Andrea Binder
1st Edition
0192870122, 978-0192870124
