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 €1,000, 25 years to maturity, and a coupon rate of7.1 percent paid annually. If the yield to maturity is 8.2 percent,what is the current price of the bond?

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Current price of the Bond The Price of the Bond is the Present Value of the Coupon Payments plus the Present Value of the Face ValuePar Value The Price of the    See Answer
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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 €1,000, 25 years to maturity, and a coupon rate of7.1 percent paid annually. If the yield to maturity is 8.2 percent,what is the current price of the bond?

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