A French company has corporate bonds that make annual coupon payments on its bonds. The bonds' face value equals €1,000. The bonds will mature in another 25 years and they have a 7.1 % coupon rate. These bonds' yield to maturity is 8.2 %. Give all of the above information, a fair price of each of these bonds in today's economy is €_____.?

Answer rating: 100% (QA)

To calculate the fair price of the bonds we can use the present value of the bonds future cash flows which include both the periodic coupon payments and the final principal payment at maturity Given the following information Face value of the bond ... View the full answer