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Business & Finance
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The royalties from sales of the music are used to pay interest and principal on the bonds. The bond was issued with a coupon rate of 6.9% and will mature on this day 28 years from now. The yield on the bond is currently 6.15%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons? Round to nearest cent

Jul 3rd, 2015

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the price of the bond today = $ 1099.02 (answer)

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Jul 3rd, 2015

Given the current market rate of 6.150% for a similar bond, a bond with a face value of $1,000.00 and paying a coupon rate of 6.900% (compounding Annually), should be selling for $1,099.02 (selling at a premium).


Jul 3rd, 2015

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Jul 3rd, 2015
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Jul 3rd, 2015
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