The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond 8.4% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.2%, then the price that this bond trades for will be closest to: ... O A. $5,545 B. $7,763 O C. $4,436 O D. $6,654

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches
maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is
8.4% and that the coupon payments are to be made semiannually.
Assuming the appropriate YTM on the Sisyphean bond is 7.2%, then the price that this bond
trades for will be closest to:
O A. $5,545
O B. $7,763
O C. $4,436
O D. $6,654
Transcribed Image Text:The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.4% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.2%, then the price that this bond trades for will be closest to: O A. $5,545 O B. $7,763 O C. $4,436 O D. $6,654
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