Calculate the current price of a $5,000 par value bond that has a coupon rate of 15 percent, pays coupon interest quarterly (i.e., 4 times per year), has 28 years remaining to maturity, and has a current yield to maturity (discount rate) of 21 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).

Answer rating: 100% (QA)

SOLUTION To calculate the current price of the bond we can use the following formula Current Price Present Value of Future Coupons Present Value of Fu... View the full answer