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Twelve years ago North Central Positronics (NPC) issued fifteenyear 11.0% semi-annual coupon bonds each with a $1,000 face value. Since then, interest rates have generally
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Twelve years ago North Central Positronics (NPC) issued fifteenyear 11.0% semi-annual coupon bonds each with a $1,000 face value. Since then, interest rates have generally fallen and the yield to maturity on the NPC bonds is now 8.5%. Give this information, what is the price today for a NPC bond?
$616
$740
$887
$514
$1,065
Twelve years ago North Central Positronics (NPC) issued fifteenyear 11.0% semi-annual coupon bonds each with a $1,000 face value. Since then, interest rates have generally fallen and the yield to maturity on the NPC bonds is now 8.5%. Give this information, what is the price today for a NPC bond?
| $616 | ||
| $740 | ||
| $887 | ||
| $514 | ||
| $1,065 |
Please show all work and calculations!
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