Bond valuation and bond valuation

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A. Bond valuation

Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 6 years to maturity, and an 8% YTM. What is the bond's price? Round your answer to the nearest cent.

B. Bond valuation

You are considering a 30-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 10.94%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

Reference no: EM131881294

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