A bond has a par value of $1,000, pays a semiannual coupon at a rate of 3% and matures in 13 years. Under some financial hardships, management has stated that it will not be able to pay its next coupon payment (which is scheduled 6 months from today), but all other coupon payments will be made as scheduled. If the YTM is 8%, what would the price of the bond be?

Answer rating: 100% (QA)

To calculate the price of the bond under the given circumstances well use the concept of the present ... View the full answer