Bond valuation-compute the price of the bond

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Reference no: EM13875917

Bond Valuation

Bonds issued by the CZY Corporation have a par value of of $1,000, which, of course, is also the amount of principal to be paid at maturity. The bonds are currently selling for $850. They have ten years remaining to maturity. The annual interest payment is eight percent. Compute the yield to maturity.

Heather Moses is considering a bond investment in Martin Computer Systems. The $1,000 par value bonds have a quoted annual interest rate of nine percent and interest is paid semi-annually. The yield to maturity on the bonds is 12 percent annual interest. There are 15 years to maturity. Compute the price of the bond.

Reference no: EM13875917

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