Vulcan, Inc., has 8.4 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 10.4 percent, what is the current bond price?
Ans:
N: 6 I/Y: 10.4 PV: ? PMT: 84 FV: 1,000
8.4% *1000= PMT
PV: 913.906418= 913.91
Current Bond Price: 913.91
You might also like to view...
Products Uno, Dos, Tres, and Quatro have contribution margins of $2, $3, $4, and $5, respectively, and require 1.5, 2, 2.5, and 3 machine hours per unit, respectively. Assuming that all units produced could be sold and that total machine hours per month are limited, on which product should the company concentrate its efforts?
a. Dos b. Quatro c. Uno d. Tres
One of the effects of NAFTA is the simplification of country-of-origin rules. This will likely hinder the international trade activities of
A. Canada. B. Japan. C. Brazil. D. Cuba. E. Panama.
_________ viruses infect scripting code used to support active content in a variety of user document types
What will be an ideal response?
Because they appear on page 1 of Form 1040, itemized deductions are also referred to as "page 1 deductions."
a. True b. False Indicate whether the statement is true or false