A $15,437 par value whose coupon rate is 5.8% is purchased. If the investment represents a...
A $15,437 par value whose coupon rate is 5.8% is purchased. If the investment represents a current yield of 5.2%, compute the bond's market price at the time of the purchase.
Homework Answers
Answer:
Bonds Market Price = Interest / Yield
= (Par Value*Coupon rate) / Yield Rate
= ($15437*5.8%) / 5.2%
= $17,218
Thanks....
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