What will be the bond price


Problem

Metasale Ltd is issuing 6-year bonds with a coupon rate of 5.88 per cent and semiannual coupon payments. If the current market rate for similar bonds is 6.4 per cent, what will be the bond price? Assume each bond has a face value of $1000. If the company wants to raise $1.25 million, how many bonds will it have to sell?

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