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
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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
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