#23. A company issues a ten-year bond at par with a coupon rate of 6.7% paid...

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#23. A company issues a ten-year bond at par with a coupon rate of 6.7% paid...

#23. A company issues a ten-year bond at par with a coupon rate of 6.7% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 9.5%. What is the new price of the bond? A. $ 1015 B. $ 846 C. $ 1184 D. $1,000

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Answer #1

COUPON RATE 6.70% YEAR TO MATURITY 8.00 NPER 16 (years to maturity x 2) PMT 33.5 (face value x coupon rate)/2 FACE VALUE 1000

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