Answered: A 9.65% coupon bond with 5 years to…

A 9.65% coupon bond with 5 years to maturity yields 6.79%. What is the bond's price one year from today if the yield to maturity is 7.14%? (Assume semiannual

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 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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Question

A 9.65% coupon bond with 5
years to maturity yields 6.79%.
What is the bond's price one year
from today if the yield to maturity
is 7.14%? (Assume semiannual
interest payments and $1,000 par
value)
Multiple Choice
$867
$1,086
$918
$1,220

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