Question: how to get the numbers underlined in red? 6. The Pinkymon Corporation issued a new series of bonds at face value of $1000, with a

how to get the numbers underlined in red? 6. The Pinkymon

how to get the numbers underlined in red?

Corporation issued a new series of bonds at face value of $1000,

6. The Pinkymon Corporation issued a new series of bonds at face value of $1000, with a 3% coupon rate, annual coupon payments and maturity of 20 years. Consider the bondholder wants to sell the bond immediately after the 11th payment, assuming the interest rate in the economy has fallen to 2%, what is the competitive selling price of the bond? P = 30 7.162 2 (PA, 21 9 + 1.02) 9 = 1081, 62

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