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what is the price of a 5 year A-rated corporate bond with annual coupon of 12% if trading at equilibrium? (round to two places) Answer
what is the price of a 5 year A-rated corporate bond with annual coupon of 12% if trading at equilibrium? (round to two places)
Use the following information to answer. Coupon Payments are annual unless otherwise indicated! Years Face Coupon Market Security Rating Maturity Value Rate Price Treasury 1$ 1,000 0.00% $ 965.00 Treasury 3 $ 1,000 1.90% $ 939.06 Treasury 5 $ 1,000 4.30% $ 932.42 Treasury 10 $ 1,000 6.80% $ 1,007.12 Treasury 15 $ 1,000 6.60% $ 908.25 Corp A 5 $ 1,000 8.10% $ 990.00 Corp B 10 $ 1,000 7.90% $ 859.88 Corp C 15 $ 1,000 7.00% $ 660.00 Al BB AA Answer choices: $1148.55 $1107.55 $1040.66 $990.00 none of the above
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