Langford Co. Issued 14-year bonds a year ago at a coupon rate of 8.8%. The bonds make semiannual payments. If the YTM on thesebonds Is 7.1%, what is the current bond price? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.Omit $ sign in your response.)Current bond price

Answer : Future value (FV)= $1000 Coupon rate = 8.8%/2= 4.4% Coupon payment (PMT) = $1,000*4.4% =…

Answered: The bonds make semiannual payments. ?…

Business

Accounting

The bonds make semiannual payments. ? (Do not round Intermediate calculations. Round the final answert

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Langford Co. Issued 14-year bonds a year ago at a coupon rate of 8.8%. The bonds make semiannual payments. If the YTM on these
bonds Is 7.1%, what is the current bond price? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.
Omit $ sign in your response.)
Current bond price

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