Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay...

Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 13.00%. If the yield to maturity for the bond is 13.0%, what will the price of the bond be?

Answer format: Currency: Round to: 2 decimal places.

Expert Solution

Answer: $1000.00

Solving this question does not require any mathematical equaltions or calculations. It just needs us to know the relationship that coupon rate and yield to maturity have and their impact on bond price relevant to par value of bond.

jeff jeffy answered 2 years ago

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Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay...

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