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Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 13 percent annual interest....

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Finance

Essex Biochemical Co. has a $1,000 par value bond outstandingthat pays 13 percent annual interest. The current yield to maturityon such bonds in the market is 13 percent. Use Appendix B andAppendix D for an approximate answer but calculate your finalanswer using the formula and financial calculator methods. Computethe price of the bonds for the maturity dates: (Do not roundintermediate calculations. Round your final answer to 2 decimalplaces. Assume interest payments are annual.)

Bond Price
a.30 years
b.20 years
c.2 years

Answer & Explanation Solved by verified expert
4.4 Ratings (979 Votes)
aInformation provided Par value future value 1000 Yield to maturity 13 Coupon rate 13 Coupon payment 0131000 130 Time 30 years The current price of the bond is calculated by computing the present value Enter the below in a financial calculator to compute the    See Answer
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