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Wine and Roses, Inc., offers a bond with a coupon of 8.5 percent with semiannual payments...

Wine and Roses, Inc., offers a bond with a coupon of 8.5 percent with semiannual payments and a yield to maturity of 8.34 percent. The bonds mature in 17 years. What is the market price of a $1,000 face value bond?

  • $1,269.90

  • $1,249.32

  • $1,765.09

  • $1,014.40

  • $1,779.49

0 0
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Answer #1

COUPON RATE 8.50% YEAR TO MATURITY 17.00 NPER 34 (years to maturity x 2) PMT 42.5 (face value x coupon rate)/2 FACE VALUE 100

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