Nooklor Inc. issued bonds bearing an annual coupon rate of 10 percent, payable semiannually. The bonds...

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Nooklor Inc. issued bonds bearing an annual coupon rate of 10 percent, payable semiannually. The bonds...

Nooklor Inc. issued bonds bearing an annual coupon rate of 10 percent, payable semiannually. The bonds have 25 years remaining to maturity and have a yield to maturity of 12 percent. What is the bond price? (Round to the nearest dollar). Group of answer choices

A) $451

B) $842

C) $872

D) $1,630

business finance

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Answer 1

Answer #1

B) $842

Value of bond is the present value of cash flows from bond which is calculated as follows:

Value of bond	=	=-pv(rate,nper,pmt,fv)	Where,
	=	$ 842	rate	Discount rate	=	6%
			nper	Time	=	50
			pmt	Coupon Payment	=	$ 50
			fv	Face value	=	$ 1,000

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Answer 2

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