Bond prices and maturity dates. Les Company is about to issue a bond with semiannual coupon payments, an annual coupon rate of 10​%, and a par value of $1,000. The yield to maturity for this bond is 8​%.   a. What is the price of the bond if it matures in 5​,10​,15​,or20 years? b. What do you notice about the price of the bond in relationship to the maturity of the​ bond?       a. What is the price of the bond if it matures in 5 ​years?   ​$ (Round to the nearest​ cent.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Bond prices and maturity dates. Les Company is about to issue a bond with semiannual coupon payments, an annual coupon rate
of 10​%, and a par value of $1,000. The yield to maturity for this bond is 8​%.
 
a. What is the price of the bond if it matures in 5​,10​,15​,or20 years?
b. What do you notice about the price of the bond in relationship to the maturity of the​ bond?
 
 
 
a. What is the price of the bond if it matures in
5 ​years?
 
​$ (Round to the nearest​ cent.)
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