A Corporate Bonds matures in 27 years, yields 8.47% and makes coupon payments of 9%. If the par value equals $1,000, what should be the price of this corporate bond? Enter your answer to the nearest penny.

A Corporate Bonds matures in 27 years, yields 8.47% and makes coupon payments of 9%. If the par value equals $1,000, what should be the price of this corporate bond? Enter your answer to the nearest penny.

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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Question

A Corporate Bonds matures in 27 years, yields 8.47% and makes coupon
payments of 9%. If the par value equals $1,000, what should be the price of this
corporate bond? Enter your answer to the nearest penny.

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