Question
The Victoria Telephone Company has a $1,000 par value bond outstanding that pays 18 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 18 percent interest with annual payments. The current yield to maturity on such bonds in the market is 19 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. 25 Year | $ |
| b. 18 Year | $ |
| c. 1 Year | $ |
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The Global Financial Crisis What Have We Learnt
Authors: Steven Kates
1st Edition
0857934228, 978-0857934222
