Question: Based on the below data for a bond issuance, What is the sale price of the bond? Principal: 8% Coupon rate: 8% Market rate: 10%

Based on the below data for a bond issuance, What is the sale price of the bond?

Principal: 8%

Coupon rate: 8%

Market rate: 10%

Term: 4 years


4-year factors:

8% PV of $1

8% pv of annuity

10% pv of $1

10% pv of annuity

interest paid annually

 




 



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