arshall Company is issuing eight-year bonds with a coupon rate of 7.85 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.53 percent. 'hat will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.) ond price s the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of onds to 0 decimal places, e.g. 5,275.) umber of bonds bonds

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Problem 8.15
Marshall Company is issuing eight-year bonds with a coupon rate of 7.85 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.53 percent.
What will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.)
Bond price
If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of
bonds to 0 decimal places, e.g. 5,275.)
Number of bonds
bonds
Transcribed Image Text:Problem 8.15 Marshall Company is issuing eight-year bonds with a coupon rate of 7.85 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.53 percent. What will be the bond price? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and bond price to 2 decimal places, e.g. 15.25.) Bond price If the company wants to raise $1.25 million, how many bonds does the firm have to sell? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and number of bonds to 0 decimal places, e.g. 5,275.) Number of bonds bonds
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