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The Sisyphean company has a bond outstanding with a face value of $1,000 that reaches maturity...

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Finance

The Sisyphean company has a bond outstanding with a face valueof $1,000 that reaches maturity in 15 years. The bond certificateindicates that the stated coupon rate for this bond is 8% and thatthe coupon payment are to be made semi-annually.

How much are each of the semi-annual coupon payments? Assumingthe appropriate YTM on the Sisyphean bond is 8.8%, then at whatprice should this bond trade?

Answer & Explanation Solved by verified expert
3.9 Ratings (378 Votes)
The semi annual coupon payment is computed as shown below Coupon rate 2 x face value 8 2 x 1000 Since the payments are semi annual hence divided by 2 40 The price of    See Answer
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The Sisyphean company has a bond outstanding with a face valueof $1,000 that reaches maturity in 15 years. The bond certificateindicates that the stated coupon rate for this bond is 8% and thatthe coupon payment are to be made semi-annually.How much are each of the semi-annual coupon payments? Assumingthe appropriate YTM on the Sisyphean bond is 8.8%, then at whatprice should this bond trade?

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