Even though most corporate bonds in Canada and the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 19 years to maturity, and a coupon rate of 9 percent paid annually. If the yield to maturity is 7 percent, what is the current price of the bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit € sign in your response.) Current price of the bond € 35166.67
Even though most corporate bonds in Canada and the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 19 years to maturity, and a coupon rate of 9 percent paid annually. If the yield to maturity is 7 percent, what is the current price of the bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit € sign in your response.) Current price of the bond € 35166.67
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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Transcribed Image Text:Even though most corporate bonds in Canada and the United States make coupon payments semiannually, bonds issued
elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 19 years
to maturity, and a coupon rate of 9 percent paid annually.
If the yield to maturity is 7 percent, what is the current price of the bond? (Do not round intermediate calculations. Round the
final answer to 2 decimal places. Omit € sign in your response.)
Current price of the bond
€ 35166.67
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