How much would you be willing to pay for the pecs bond

Reference no: EM133264584

Question: Suppose you are considering purchasing a bond issued by Pacific Energy Corp (PEC). The PEC's bond has 15 years to maturity and pays an annual coupon of $60 with a face value of $1,000. If the market commands a yield to maturity (YTM) of 6% for other bonds with a similar risk and maturity, how much would you be willing to pay for the PEC's bond?

Reference no: EM133264584

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