Bond prices and maturity dates. Moore Company is about to issue a bond with monthly coupon...

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Finance

Bond prices and maturity dates. Moore Company is about to issuea bond with monthly coupon ?payments, an annual coupon rate of 8?%,and a par value of $5,000.The yield to maturity for this bond is9?%
a. What is the price of the bond if it matures in 5?,10,15?,20?years?
b. hat do you notice about the price of the bond in relation tothe maturity of the? bond?

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3.7 Ratings (623 Votes)

a Bond prices can be found using PV function as followsMaturity of bond in years5101520Par value See Answer

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Bond prices and maturity dates. Moore Company is about to issuea bond with monthly coupon ?payments, an annual coupon rate of 8?%,and a par value of $5,000.The yield to maturity for this bond is9?%a. What is the price of the bond if it matures in 5?,10,15?,20?years?b. hat do you notice about the price of the bond in relation tothe maturity of the? bond?