A semi-annual coupon bond has a 8.0 percent coupon rate, a $1000 face value, a current value of $1021.32, and 5 years until the first call date. What's the call price if the yield to cal is 8.5 percent?

A semi-annual coupon bond has a 8.0 percent coupon rate, a $1000 face value, a current value of $1021.32, and 5 years until the first call date. What's the call price if the yield to cal is 8.5 percent?

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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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