Current price of the bonds of green bar corporation


Green Bar Corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Current price of the bonds of green bar corporation
Reference No:- TGS0671460

Now Priced at $5 (50% Discount)

Recommended (98%)

Rated (4.3/5)