XYZ has issued a 5-year coupon bond with face value $1000O. Coupon rate is 6.7percent per annum and the coupon is paid annually. What is the fair price of thebond if the yield to maturity is 7.9 percent per annum.

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Answered: XYZ has issued a 5-year coupon bond…

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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XYZ has issued a 5-year coupon bond with face value $1000. Coupon rate is 6.7 percent per annum and the coupon is paid annually. What is the fair price of the bond if the yield to maturity is 7.9 percent per annum.