Sandhill, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,084.29 today and your required rate of return was 5.6 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25.)

How much should you have paid for the bond?

Worth of the bond $______

Did you pay the right price for the bond? Good, Fair, or Bad

Answer rating: 100% (QA)

To calculate how much you should have paid for the bond we ca... View the full answer