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FIN 571 Week 4 Connect Problems
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FIN 571 Week 4 Connect Problems
Q-1
Even though most corporate bonds in the United States make coupon
payments semiannually, bonds issued elsewhere often have annual
coupon payments. Suppose a German company issues a bond with a par
value of €1,000, 20 years to maturity, and a coupon rate of 7 percent paid
annually.
If the yield to maturity is 8.1 percent, what is the current price of the bond?
(Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
Q-1 (Set 2)