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 = 0.08
Yield = 0.08
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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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
