Company RS’s bonds outstanding have a coupon rate of 6% and semiannual payments. If the YTM  on this bond is 7.9%, and considering that the face value of each bond is $10,000, calculate the  price of these bonds if the maturity will happen exactly 26 years from now.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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Company RS’s bonds outstanding have a coupon rate of 6% and semiannual payments. If the YTM 
on this bond is 7.9%, and considering that the face value of each bond is $10,000, calculate the 
price of these bonds if the maturity will happen exactly 26 years from now.

 

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