Question
When Polycorp issued its debentures three years ago, they had six years remaining to maturity. Using the following information, calculate the price of the debentures
When Polycorp issued its debentures three years ago, they had six years remaining to maturity. Using the following information, calculate the price of the debentures today.
Face value = $100
Coupon Rate = 0.06
Yield = 0.09
Both the coupon rate and the yield are expressed as decimals, e.g. 12% pa is expressed as .12
Calculate the price accurate to two decimal places. Do not enter the $ sign.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
