Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
The Sisyphean Company has a bond outstanding with a face value of
$5,000
that reaches maturity in
8
years. The bond certificate indicates that the stated coupon rate for this bond is
8.9%
and that the coupon payments are to be made semiannually.Assuming the appropriate YTM on the Sisyphean bond is
10.7%,
then the price that this bond trades for will be closest to:$4,524
$3,619
$6,334
$5,429
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