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Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere...

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Finance

Even though most corporate bonds in the United States makecoupon payments semiannually, bonds issued elsewhere often haveannual coupon payments. Suppose a German company issues a bond witha par value of? 1000, 25 years to maturity, and a coupon rate of6.4 percent paid annually. If the yield to maturity is 7.5 percent,what is the current price of the bond?

If the yield to maturity is 8.2 percent, what is the currentprice of the bond? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)

______price?

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4.1 Ratings (749 Votes)
1 Information provided Par value future value 1000 Time 25 years Coupon rate 64 Coupon payment 00641000 64 Yield to maturity 75 The current price of the bond is calculated by    See Answer
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Transcribed Image Text

Even though most corporate bonds in the United States makecoupon payments semiannually, bonds issued elsewhere often haveannual coupon payments. Suppose a German company issues a bond witha par value of? 1000, 25 years to maturity, and a coupon rate of6.4 percent paid annually. If the yield to maturity is 7.5 percent,what is the current price of the bond?If the yield to maturity is 8.2 percent, what is the currentprice of the bond? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)______price?

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