Question: 1. Problem 10-8 (calculator version) Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a

1. Problem 10-8 (calculator version) Ron Rhodes calls his broker to

inquire about purchasing a bond of Golden Years Recreation Corporation. His broker

1. Problem 10-8 (calculator version) Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of $1,110. Ron is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 11 percent annual interest payable semiannually has 10 years remaining until maturity. The current yield to maturity on similar bonds is 10 percent. a. Compute the newr price of the bond. {Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.) $ New pn'ce of the bond

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