Madison Inc. just issued bonds with a par value of $1,000, an annual coupon rate of 3.5%, coupons paid semiannually, and a maturity of 10 years? The bonds have a yield to maturity of 5.1%. What is the price of these bonds? Enter your answer as a number with 2 decimal places of precision. Do not enter dollar signs or commas. Do not enter your answer as a negative number.
Madison Inc. just issued bonds with a par value of $1,000, an annual coupon rate of 3.5%, coupons paid semiannually, and a maturity of 10 years? The bonds have a yield to maturity of 5.1%. What is the price of these bonds? Enter your answer as a number with 2 decimal places of precision. Do not enter dollar signs or commas. Do not enter your answer as a negative number.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Madison Inc. just issued bonds with a par value of $1,000, an annual coupon rate of 3.5%, coupons paid semiannually, and a maturity of 10 years? The bonds have a yield to
maturity of 5.1%.
What is the price of these bonds?
Enter your answer as a number with 2 decimal places of precision. Do not enter dollar signs or commas. Do not enter your answer as a negative number.
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