Page 1 of 1

ABC Limousine Company has $1,000 par value bonds outstanding at a 10% coupon rate. The bonds will mature in 50 years. Co

Posted: Sun Jul 03, 2022 12:52 pm
by answerhappygod
ABC Limousine Company has $1,000 par value bonds outstanding ata 10% coupon rate. The bonds will mature in 50 years. Compute thecurrent price of the bonds if the yield to maturity (YTM) is:
a. YTM = 5%. Must show work
b. YTM = 15%. Must show work