Find current price of bonds with three years to maturity


The nickelodeon manufacturing co. has a series of $1000 par value bonds outstanding.Each bond pays interest semi-annually and carries an annual coupon rate of 7%.some bonds are due in 3 years and others are due in 10 years. if the required rate of return on bonds is 10% what is the current price of the A) the bonds with 3 years to maturity B) bonds with 10 years maturity? Explain the relationship between the number of years until the bond matures and it price.

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Finance Basics: Find current price of bonds with three years to maturity
Reference No:- TGS0551719

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