The yield to maturity of a $1,000 bond with a 7.3% coupon rate, semiannual coupons, and two years to maturity is 8.8% APR, compounded semiannually. What is its price? The price of the bond is $. (Round to the nearest cent.) CUB

The yield to maturity of a $1,000 bond with a 7.3% coupon rate, semiannual coupons, and two years to maturity is 8.8% APR, compounded semiannually. What is its price? The price of the bond is $. (Round to the nearest cent.) CUB

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Question

The yield to maturity of a $1,000 bond with a 7.3% coupon rate, semiannual coupons, and two years to maturity is 8.8% APR, compounded semiannually. What is its price?
The price of the bond is $
(Round to the nearest cent.)
GIER

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