Question: (CHAPTER 7) Large corporations often need to borrow a large amount of money for, say, their expansion projects. Instead of asking for a bank loan,

(CHAPTER 7) Large corporations often need to borrow a large amount

(CHAPTER 7) Large corporations often need to borrow a large amount of money for, say, their expansion projects. Instead of asking for a bank loan, they can decide to borrow in the open market by selling a large number of corporate bonds. The price received from selling each bond becomes a "mini loan" that will then need to be repaid over a number of years. GIVEN: The corporation issued 11 percent coupon bonds 3 years ago. . At that time they had 17 years to maturity. The face value of each is $1,000. They are making semiannual payments to their holders. The yield to maturity on these bonds is 6 percent. Today, if you wanted to buy such bonds, how much would you be paying for each bond? Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decima 1,000.23. Do NOT use "$" in your

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