Question
In: Finance
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The...
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6 percent, what is the current bond price?
Solutions
Expert Solution
M= $1000, n = 10 * 2 = 20
semi-annual periods, C = 7% * $1000/2 = $35 (semi-annually), i =
6%/2 = 3% (semi-annually)
P = $520.71 + $553.68
P = $1,074.39
jeff jeffy answered 2 years agoRelated Solutions
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 7 percent. The...
Weismann Co. issued 11-year bonds a year ago at a coupon rate of
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