Suppose that, to finance the operation of its food truck business, Awesome Food Trucks Inc. decides to raise money by issuing bonds in Canada. Each bond has a face value of $10,000, a 5% annual coupon, and matures in 2 years. The buyers of bonds use an annual discount rate of 6% to value the bonds.

Calculate the fair market price of an Awesome Trucks bond.

Answer rating: 100% (QA)

The fair market price of a bond can be calculated using the present ... View the full answer