Determine the current price of the bond


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, 15 years to maturity, and a coupon rate of 6.9 percent paid annually. If the yield to maturity is 8.0 percent, what is the current price of the bond?

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Finance Basics: Determine the current price of the bond
Reference No:- TGS0550542

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