Question 8 A 25-year R1 000 par value bond has an 8,50% annual coupon. The bond currently sells for R875. If the yield to maturity remains at its current rate, what will the price be five years from now? 1. R 675,53 2. R 882,90 3. R 948,16 4. R10 915,78

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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Question 8

A 25-year R1 000 par value bond has an 8,50% annual coupon. The bond currently sells for R875. If the yield to maturity remains at its current rate, what will the price be five years from now?

1. R 675,53

2. R 882,90

3. R 948,16

4. R10 915,78

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