A Ford Motor Co. coupon bond has a coupon rate of 6.95%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 36 years from tomorrow. The yield on the bond issue is 6.45%. At what price should this bond trade today, assuming a face value of $1,000? The price of the bond today should be $__________ (Round to the nearest cent.)
A Ford Motor Co. coupon bond has a coupon rate of 6.95%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 36 years from tomorrow. The yield on the bond issue is 6.45%. At what price should this bond trade today, assuming a face value of $1,000? The price of the bond today should be $__________ (Round to the nearest cent.)
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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A Ford Motor Co. coupon bond has a coupon rate of 6.95%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 36 years from tomorrow. The yield on the bond issue is 6.45%. At what price should this bond trade today, assuming a face value of $1,000?
The price of the bond today should be $__________ (Round to the nearest cent.)
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