Question

A company has 7.5% coupon bonds on the market that have ten years left to maturity. The
bonds make annual payments. If the YTM on these bonds is 8.75%, what is the current
bond price?

Answer 1

Answer:

Malahat Inc. has 7.5% coupon bonds on the market that have ten years left to maturity. The bonds make annual payments. If the YTM on these bonds is 8.75%, what is the current bond price? Assume the par value of a bond is $1,000. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Current bond price $