Schermer, Inc. just issued a $5000 par value bond. The bond, which matures exactly 25 years...

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Schermer, Inc. just issued a $5000 par value bond. The bond, which matures exactly 25 years from today, has a coupon rate of 6.5% (semi-annual payments). If the appropriate yield to maturity for this bond is 5.75%, what is the current price of the Schermer, Inc. bond? Record your answer as a dollar amount rounded to 2 decimal places, but do not include a dollar sign with your answer. For example, enter $2,321.83987 as 2321.84. Schermer, Inc. just issued a $5000 par value bond. The bond, which matures exactly 25 years from today, has a coupon rate of 6.5% (semi-annual payments). If the appropriate yield to maturity for this bond is 5.75%, what is the current price of the Schermer, Inc. bond? Record your answer as a dollar amount rounded to 2 decimal places, but do not include a dollar sign with your answer. For example, enter $2,321.83987 as 2321.84.

Answer rating: 100% (QA)

To calculate the current price of the Schermer Inc bond we can use the present value of the bonds fu... View the full answer