Valuing Bonds [LO2] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments
Valuing Bonds [LO2] Even though most
corporate bonds in the United States make coupon payments semiannually,
bonds issued elsewhere often have annual coupon payments. Suppose a
German company issues a bond with a par value of €1,000, 23 years to
maturity, and a coupon rate of 5.8 percent paid annually. If the yield
to maturity is 4.7 percent, what is the current price of the bond?
Valuing Bonds [LO2] Union Local School District has a bond outstanding
with a coupon rate of 3.7 percent paid semiannually and 16 years to
maturity. The yield to maturity on this bond is 3.9 percent, and the
bond has a par value of $5,000. What is the price of the bond?

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