The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.2%, then the price that this bond trades for will be closest to: A. $5,437 B. $4,531 C. $3,625 D. $6,344
The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.2%, then the price that this bond trades for will be closest to: A. $5,437 B. $4,531 C. $3,625 D. $6,344
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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The Sisyphean Company has a bond outstanding with a face value of
$5,000
that reaches maturity in
5
years. The bond certificate indicates that the stated coupon rate for this bond is
8.7%
and that the coupon payments are to be made semiannually.Assuming the appropriate YTM on the Sisyphean bond is
11.2%,
then the price that this bond trades for will be closest to:$5,437
$4,531
$3,625
$6,344
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