A bond has a coupon rate of 7.7% and pays coupons annually. The bond matures in 18 years and the yield to maturity on similar bonds is 11.6%. What is the price of the bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
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A bond has a coupon rate of 7.7% and pays coupons annually. The bond matures in 18 years and the yield to maturity on similar bonds is 11.6%. What is the price of the bond?

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