What is the market price of a bond with a maturity of 21 years, a coupon rate of 9.2% paid semi-annually, a par value of $1000, and a yield to maturity of 5.0%. (Round your answer to the nearest penny.) Answer:

What is the market price of a bond with a maturity of 21 years, a coupon rate of 9.2% paid semi-annually, a par value of $1000, and a yield to maturity of 5.0%. (Round your answer to the nearest penny.) Answer:

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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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

Question

What is the market price of a bond with a maturity of 21 years, a coupon rate of 9.2% paid
semi-annually, a par value of $1000, and a yield to maturity of 5.0%. (Round your answer to
the nearest penny.)
Answer:

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