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 Sisyphean Company has a bond outstanding with a face value of

$5,000

that reaches maturity in

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

Your answer is correct.

$3,619

$6,334

$5,429

Jun 08, 2022

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