Question: I have been trying to solve this question for two days and for some reason I am not getting the correct answer. Can you help?
I have been trying to solve this question for two days and for some reason I am not getting the correct answer. Can you help? Below is the problem:
| Microhard has issued a bond with the following characteristics: |
| Par: $1,000 |
| Time to maturity:6 years |
| Coupon rate: 9 percent |
| Semiannual payments |
| Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): |
| Price of the Bond | ||
| a. | 9 percent | $ |
| b. | 11 percent | $ |
| c. | 7 percent | $ |
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