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  3. a corporate bond matures in 14 years. the bond has

A corporate bond matures in 14 years. The bond has an 8 percent coupon and a...

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Finance

A corporate bond matures in 14 years. The bond has an 8 percentcoupon and a par value of $1,000. Interest is paid semiannually.The bond is priced to yeild 6.0%. What is the bond's current price?Hint: Should it be above or below the face value?

Group of answer choices

$987.52

$1,006.57

$1,187.64

$1,199.35

$1,212.24

Answer & Explanation Solved by verified expert
4.2 Ratings (716 Votes)
Statement showing price of bond In case of semi annual bond yield 623 Coupon rate824 Years14228 Particulars Time PVf 3 Amount PV Cash Flows Interest 100 09709 4000 3883 Cash Flows Interest 200 09426 4000 3770 Cash Flows Interest 300 09151 4000 3661 Cash Flows Interest 400    See Answer
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