A $1000 bond with semi-annual coupons is redeemable at 103 in 5 years. The absolute value of the write down (book value adjustment) in the first coupon is $3.99 and the absolute value of the write down (book value adjustment) in the 5th coupon is $4.85. What is the price of the bond?

A $1000 bond with semi-annual coupons is redeemable at 103 in 5 years. The absolute value of the write down (book value adjustment) in the first coupon is $3.99 and the absolute value of the write down (book value adjustment) in the 5th coupon is $4.85. What is the price of the bond?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A $1000 bond with semi-annual coupons is redeemable at 103 in 5 years. The
absolute value of the write down (book value adjustment) in the first coupon is $3.99 and the
absolute value of the write down (book value adjustment) in the 5th coupon is $4.85. What
is the price of the bond?

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