Current Price of Bond

SoccerBoss
Category:
Accounting
Price: $5 USD

Question description

1.  Her IBM currently has one bond in the Liabilities section of its Balance Sheet.  This 10-year bond with 5 years to maturity and a 6% coupon paying semi-annually, has a yield to maturity (NOTE: the cost of this form of debt capital for IBM) of 4.25%.  What is the current price of the bond if par value is $1,000?

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