4. Consider a $1,000 par value bond issued by ACEN with a maturity date of 2045 and a stated coupon rate of 8.5 percent that pays interest on an annual basis. On January 1, 2023, the bond had 23 years left to maturity, and the market's required yield to maturity for similarly rated debt was 7.5 percent. What is the value of the bond?
4. Consider a $1,000 par value bond issued by ACEN with a maturity date of 2045 and a stated coupon rate of 8.5 percent that pays interest on an annual basis. On January 1, 2023, the bond had 23 years left to maturity, and the market's required yield to maturity for similarly rated debt was 7.5 percent. What is the value of the bond?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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