You own a bond that pays an 18.25% coupon. The bond matures in 17 years and has a par value of $1.000. Assuming this is an annual bond with a YTM of 11.30%, what is the bonds current price? Question 9 options: $1,515.39 $1,666.93 $1,727.55 $1,621.47 $1,363.85

You own a bond that pays an 18.25% coupon. The bond matures in 17 years and has a par value of $1.000. Assuming this is an annual bond with a YTM of 11.30%, what is the bonds current price? Question 9 options: $1,515.39 $1,666.93 $1,727.55 $1,621.47 $1,363.85

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 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...

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Question

You own a bond that pays an 18.25% coupon. The bond matures in 17 years and has a par value of $1.000. Assuming this is an annual bond with a YTM of 11.30%, what is the bonds current price?

Question 9 options:

	$1,515.39
	$1,666.93
	$1,727.55
	$1,621.47
	$1,363.85

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