Question
The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 10 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 10 percent interest with annual payments. The current yield to maturity on such bonds in the market is 15 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 | $ 671.70 Numeric ResponseEdit Unavailable. 671.70 incorrect. |
| b. 17 Years | $ 697.64 Numeric ResponseEdit Unavailable. 697.64 incorrect. |
| c. 2 Years | $ 918.71 Numeric ResponseEdit Unavailable. 918.71 incorrect. |
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Ecological Money And Finance
Authors: Thomas Lagoarde-Segot
1st Edition
3031142314, 978-3031142314
