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Current price of bond & falling rates Business Finance

Business & Finance
Tutor: None Selected Time limit: 0 Hours

Please answer the following

Your company issues 6% coupon bonds with a face value of $1,000.  Suppose these bonds have 7 years to maturity, make semiannual payments, and have a yield to maturity of 8%.  What is the current price of the bonds?   If interest rates fall to 5%, what would the price be?

Apr 1st, 2015

1)$633.79

2)$701.45

Apr 1st, 2015

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Apr 1st, 2015
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Apr 1st, 2015
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