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Bond prices and maturity dates. Moore Company is about to issue a bond with monthly coupon...

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Finance

Bond prices and maturity dates. Moore Company is about to issuea bond with monthly coupon ?payments, an annual coupon rate of 8?%,and a par value of $5,000.The yield to maturity for this bond is9?%

a. What is the price of the bond if it matures in 5?,10,15?,20?years?

b. hat do you notice about the price of the bond in relation tothe maturity of the? bond?

Answer & Explanation Solved by verified expert
3.7 Ratings (623 Votes)
a Bond prices can be found using PV function as followsMaturity of bond in years5101520Par value    See Answer
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Bond prices and maturity dates. Moore Company is about to issuea bond with monthly coupon ?payments, an annual coupon rate of 8?%,and a par value of $5,000.The yield to maturity for this bond is9?%a. What is the price of the bond if it matures in 5?,10,15?,20?years?b. hat do you notice about the price of the bond in relation tothe maturity of the? bond?

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