Question
WaterCo bonds were issued in 2005 with a face value of $5,000 per bond. These bonds pay quarterly coupons at 7.2% (APR, compounded quarterly) and
WaterCo bonds were issued in 2005 with a face value of $5,000 per bond. These bonds pay quarterly coupons at 7.2% (APR, compounded quarterly) and currently sell at a market yield of 2.5% compounded quarterly. There are exactly 9 years remaining until the WaterCo bonds mature. What is the current market price of the WaterCo bonds? Enter your answer to the nearest cent (two decimal places).
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Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
13th edition
978-0133428537
