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Bond trades to earn an effective yield

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A firm just issued (On Jan. 1, 2017) a bond that has a face value of $1000, a coupon rate of 6% paid semi annually, (On June 30 and December 31), and matures in 8 years. The bonds were issued with a yield of maturity of 7%. What price were the bonds issued at ? Assume that on June 1, 2019, the bond trades to earn an effective yield of 8 %. At what price should this bond be trading for on July 1, 2019?

Reference no: EM132465482

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