A car company coupon bond has a coupon rate of 6.5%
and pays annual coupons. The next coupon is due tomorrow and the bond matures
26 yrs. From tomorrow. The yield on the bond issue is 6%. At what price should
this bond trade today, assuming a face value of $1,000? The price of the bond
today should be? (Round to nearest cent)
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6.5% rate bond with face value 1000 & maturity period 26 yrs : should trade today at $ 194.50
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