Garrison's company issued a $1000.00, 20 yr semi-annual bond 5 years ago, with a coupon rate of 5%. Current market rates have dropped to 3.5%. If the company issued 95000 bonds, what is the total value of debt for Garrison's company?

Garrison's company issued a $1000.00, 20 yr semi-annual bond 5 years ago, with a coupon rate of 5%. Current market rates have dropped to 3.5%. If the company issued 95000 bonds, what is the total value of debt for Garrison's company?

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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