Madsen Motors's bonds have 9 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 7%; and the yield co maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.

Madsen Motors's bonds have 9 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 7%; and the yield co maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.

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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Madsen Motors's bonds have 9 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 7%; and the yield
to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.
%24

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