Assume a par value of $1,000. Caspian Sea plans t issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.00%. If the yield to maturity for the bond is 7.0%, what will the price of the bond be?

Assume a par value of $1,000. Caspian Sea plans t issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.00%. If the yield to maturity for the bond is 7.0%, what will the price of the bond be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

#22
Assume a par value of $1,000. Caspian Sea plans to
issue a 11.00 year, semi-annual pay bond that has a
coupon rate of 7.00%. If the yield to maturity for the
bond is 7.0%, what will the price of the bond be?
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Answer format: Currency: Round to: 2 decimal places.
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