Martin Shipping Lines issued bonds 10 years ago at $1,000 per bond The bonds had...
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Martin Shipping Lines issued bonds 10 years ago at $1,000 per bond The bonds had a 30 year life when wed, with semana payments at the then annual rate of 10 percent. This return was in line with required returns y bondholders at that point, is described below 1X Real rate of return Inflation premium Hisk premium Total return 7% Assume that today the inflation premium is only 3 percent and is appropriately reflected in the required return for yield to maturity of the bonds Compute the new price of the bond. Use Appendix Band Appendix D. (Round "PV Factor" to 3 decimal places. Do not round intermediate calculations, Round the final answer to 2 decimal places.) New price of the bond
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