A company has 15-year bonds with a $5000 maturity value and a quoted coupon rate of 15% paid semiannually. The current yield is 10% compounded semiannually. (Round your answers to the nearest cent.)
A) Compute the price of these bonds.
B) Suppose that with 10 years remaining until maturity, the yield rate drops to 6% compounded semiannually. Find the new price of these bonds.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here