Answered: A 15 year $5000 par value bond has a…

A 15 year $5000 par value bond has a 12% semiannual coupon and a nominal yield to maturity of 8.5%. What is the price of the bond?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 4MC

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Question

A 15 year $5000 par value bond has a 12% semiannual coupon and a nominal yield to maturity of 8.5%. What is the price of the bond?

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