Even though most corporate bonds in Canada and the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 17 years to maturity, and a coupon rate of 9.9 percent paid annually. If the yield to maturity is 7.45 percent, what is the current price of the bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit € sign in your response.) Current price of the bond €

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
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Even though most corporate bonds in Canada and the United States make coupon payments semiannually, bonds issued elsewhere
often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 17 years to maturity, and a
coupon rate of 9.9 percent paid annually.
If the yield to maturity is 7.45 percent, what is the current price of the bond? (Do not round intermediate calculations. Round the final
answer to 2 decimal places. Omit € sign in your response.)
Current price of the bond
Transcribed Image Text:Even though most corporate bonds in Canada and the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 17 years to maturity, and a coupon rate of 9.9 percent paid annually. If the yield to maturity is 7.45 percent, what is the current price of the bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit € sign in your response.) Current price of the bond
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