Homework Question help Needed

Accounting
Tutor: None Selected Time limit: 1 Day

With celebrity bonds, celebrity raise money by issuing bonds to investors. The royalties from sales of music are used to pay interest and principal on the bonds. The bond was issued with a coupon rate of 6.5% and will mature on this day 34 years from now. The yield on the bond is currently 6.33%. At what price should this bond trade today assuming face value of $1,000 and annual coupons? The price of the bond today should be? (Round to nearest cent)

Jul 1st, 2015

Thank you for the opportunity to help you with your question! Hi, He observes that work expands so as to fill the time available for its completion.

hi, 

the solution to this question is in the attachment i have posted for you kindly have a look at it.

in case you have a question, kindly inbox me.

Because the interest rate was less than the coupon rate, the bond will sell at a premium. Higher than the face value.maths solved.pdf 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 1st, 2015
Jul 1st, 2015
Jul 2nd, 2015

That answer you provided is not one of the answers that are given to choose from


Jul 2nd, 2015

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Jul 1st, 2015
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Jul 1st, 2015
Feb 27th, 2017
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