Problem

Valuing Bonds Microhard has issued a bond with the following characteristics:Par: $1,000Ti...

Valuing Bonds Microhard has issued a bond with the following characteristics:

Par: $1,000

Time to maturity: 25 years

Coupon rate: 7 percent

Semiannual payments

Calculate the price of this bond if the YTM is:

a.7 percent


b.9 percent


c.5 percent

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