Current Attempt in Progress Your Answer Correct Answer Your answer is partially correct. Seven years ago, Swifty Corporation issued 20-year bonds that had a $1,000 face value, paid interest annually, and had a coupon rate of 10 percent. If the market rate of interest is 4.5 percent today, what is the current market price of an Swifty Corporation bond? (Round intermediate calculations to 5 decimal places, eg 1.25145 and final answer to 2 decimal places, eg. 52.75) Current market price 1524.10 Are these bonds selling at a premium or discount? These bonds are selling at a premium eTextbook and Media
Current Attempt in Progress Your Answer Correct Answer Your answer is partially correct. Seven years ago, Swifty Corporation issued 20-year bonds that had a $1,000 face value, paid interest annually, and had a coupon rate of 10 percent. If the market rate of interest is 4.5 percent today, what is the current market price of an Swifty Corporation bond? (Round intermediate calculations to 5 decimal places, eg 1.25145 and final answer to 2 decimal places, eg. 52.75) Current market price 1524.10 Are these bonds selling at a premium or discount? These bonds are selling at a premium eTextbook and Media
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
Related questions
Question
Transcribed Image Text:Current Attempt in Progress
Your Answer Correct Answer
Your answer is partially correct.
Seven years ago, Swifty Corporation issued 20-year bonds that had a $1,000 face value, paid interest annually, and had a coupon rate
of 10 percent. If the market rate of interest is 4.5 percent today, what is the current market price of an Swifty Corporation bond?
(Round intermediate calculations to 5 decimal places, eg 1.25145 and final answer to 2 decimal places, eg. 52.75)
Current market price
1524.10
Are these bonds selling at a premium or discount?
These bonds are selling at a premium
eTextbook and Media
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