Kim Shaw is considering the purchase of a 5 year bond that pays a coupon rate of
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Question:
Kim Shaw is considering the purchase of a 5 year bond that pays a coupon rate of 7.75% over the life of the bond (annual payments) and a face value of $1000 that is returned at the bond's maturity. Using a yield to maturity of 8.50%, calculate to the nearest penny the value of the bond today.
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date: