Cherry Inc. issues a 4-year default free bond which has a face value of $1 000 and

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Cherry Inc. issues a 4-year default free bond which has a face value of $1 000 and pays a yearly coupon rate of 1000%.Given the YTM of zero-coupon bonds as below calculate the price of this bond?

Maturity (years)	1	2	3	4	5
YTM	3,30%	3,85%	4,65%	5,05%	5,35%

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Oct 16, 2023 01:57 AM

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Cherry Inc. issues a 4-year default free bond which has a face value of $1 000 and

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To calculate the price of a bond you can use the present value of its cash flows In this case the bo... View the full answer

Introduction to Corporate Finance What Companies Do

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