The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.3%, then the price that this bond trades for will be closest to: A. $1,063 OB. $850 C. $1,276 OD. $1,488

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 13P
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The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10
years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon
payments are to be made semiannually.
Assuming the appropriate YTM on the Sisyphean bond is 7.3%, then the price that this bond trades for will
be closest to:
A. $1,063
B. $850
C. $1,276
D. $1,488
Transcribed Image Text:The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 10 years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 7.3%, then the price that this bond trades for will be closest to: A. $1,063 B. $850 C. $1,276 D. $1,488
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