20 Toy World bonds have a face value of $1,000, mature in 12 years, pay interest semiannually, and have a coupon rate of 7.2 percent. The next interest payment will be paid 4 months from today. What is the dirty price of this bond if the market rate of return is 7.4 percent?

20 Toy World bonds have a face value of $1,000, mature in 12 years, pay interest semiannually, and have a coupon rate of 7.2 percent. The next interest payment will be paid 4 months from today. What is the dirty price of this bond if the market rate of return is 7.4 percent?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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Question

20 Toy World bonds have a face value of $1,000, mature in 12 years, pay interest semiannually, and have a
coupon rate of 7.2 percent. The next interest payment will be paid 4 months from today. What is the
dirty price of this bond if the market rate of return is 7.4 percent?

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