20. Three years ago, Flint Corp. issued a $1,000 par value, 11 percent annual payment)...
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20. Three years ago, Flint Corp. issued a $1,000 par value, 11 percent annual payment) coupon bond. At the time the bond was issued it had 30 years to maturity. Currently this bond is selling for $948.53 in the bond market . Flint Corp. is now plazzing to issue a $1,000 par value bond with a coupon rate of 9 percent (semi-annual payments) that with mature 20 years from today. Assuming that the riskiness of the new bond is the same as the previous bond (, the YTM on the new bond is equal to the current YTM on the previous bond), how much will investor's pay for this new bond?
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