G-Dawg, Inc. plans to issue a $5000 par value bond that will mature exactly 17 years from today. The bond will have a coupon rate of 8.86%, and it will make quarterly (i.e., 4 times per year) coupon payments. If the yield to maturity for the bond is 7.48% what will the price of the bond be? 1 ) $5.660.76 2 ) $ 5,530.37 3 ) None of the answers in this list is within $0.20 of the correct answer . 4 ) $ 5,533.05 5 ) $ 5,500.89 6 $ 5,521.19

G-Dawg, Inc. plans to issue a $5000 par value bond that will mature exactly 17 years from today. The bond will have a coupon rate of 8.86%, and it will make quarterly (i.e., 4 times per year) coupon payments. If the yield to maturity for the bond is 7.48% what will the price of the bond be? 1 ) $5.660.76 2 ) $ 5,530.37 3 ) None of the answers in this list is within $0.20 of the correct answer . 4 ) $ 5,533.05 5 ) $ 5,500.89 6 $ 5,521.19

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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