Question

Sun Tan Co has percent coupon bonds on the market the bonds is what is the current bond price? years to maturity Face value o
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Price of Bond = PV of Cash flows from it.

Year CF PVF @9% Disc CF
1 $      80.00     0.9174 $   73.39
2 $      80.00     0.8417 $   67.33
3 $      80.00     0.7722 $   61.77
4 $      80.00     0.7084 $   56.67
5 $      80.00     0.6499 $   51.99
6 $      80.00     0.5963 $   47.70
7 $      80.00     0.5470 $   43.76
8 $      80.00     0.5019 $   40.15
8 $ 1,000.00     0.5019 $ 501.87
Price of Bond $ 944.65
Add a comment
Know the answer?
Add Answer to:
Sun Tan Co has percent coupon bonds on the market the bonds is what is the current bond price? years to maturity Fa...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT