A 9.52% annual coupon, 17-year bond has a yield to maturity of 6.23%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?

A 9.52% annual coupon, 17-year bond has a yield to maturity of 6.23%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?

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 4MC

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Question

A 9.52% annual coupon, 17-year bond has a yield to maturity of 6.23%. Assuming the par value is
$1,000 and the YTM is expected not to change over the next year, what should the price of the
bond be today?

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