Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 13 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for the maturity dates: (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 13 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the price of the bonds for the maturity dates: (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
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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![**Problem 10-5 Bond Value [LO10-3]**
Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 13 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
**Compute the price of the bonds for the maturity dates:**
(Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
| | Bond Price |
|------------------------|------------|
| a. 30 years | |
| b. 20 years | |
| c. 3 years | |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b07311e-f579-4ac8-b710-7e0c1ec8bc92%2Fd2cb496b-976c-469a-9556-db9972344505%2Fco5z835_processed.png&w=3840&q=75)
Transcribed Image Text:**Problem 10-5 Bond Value [LO10-3]**
Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 13 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
**Compute the price of the bonds for the maturity dates:**
(Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)
| | Bond Price |
|------------------------|------------|
| a. 30 years | |
| b. 20 years | |
| c. 3 years | |
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