Question

stealers software has 10 percent coupon bond on the market with 10 years to maturity, and the par value of $1,000. the bonds make annual coupon payments and currency sell for $1040. Bilbo technology bonds have similar risk as stealers bonds, at what price bilbo technology bonds should be selling assuming that the bilbo bonds have 2 percent coupon rate paid annually and have 1000 par value and 10 years maturity?

Answer 1