Question: Problem 6-3 Bond Prices [LO 2] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual

Problem 6-3 Bond Prices [LO 2]

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 10 years to maturity, and a coupon rate of 7.2 percent paid annually. If the YTM is 9.2 percent, what is the current bond price in euros?

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