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Weismann Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The...

Weismann Co. issued 8-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 10 percent, what is the current bond price?

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Answer #1

rate positively ..

we have to use financial calculator to solve this
put in calculator
FV 1000
PMT 1000*11%/2 55
I 10%/2 5%
N 8*2 16
Compute PV ($1,054.19)
ans = $1,054.19
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