Grossnickle Corporation issued 25-year, noncallable, 6.9% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds, given that they now have 24 years to maturity? a. $1,392.90 b. $1,401.92 c. $1,347.89 d. $1,363.52 e. $1,355.88
Grossnickle Corporation issued 25-year, noncallable, 6.9% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds, given that they now have 24 years to maturity? a. $1,392.90 b. $1,401.92 c. $1,347.89 d. $1,363.52 e. $1,355.88
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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Grossnickle Corporation issued 25-year, noncallable, 6.9% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds, given that they now have 24 years to maturity?
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