Time remaining:
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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 1st, 2015
...
Apr 1st, 2015
Mar 27th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer