ABC Corporation’s bonds have a 10-year maturity, a 9.50% coupon rate

jagguarpaw January 17, 2017 0 Comments

Question: ABC Corporation’s bonds have a 10-year maturity, a…

ABC Corporation’s bonds have a 10-year maturity, a 9.50% coupon rate with interest paid semiannually, and a par value of $1,000. If your nominal required rate of return on these bonds is 8.75%, what is the maximum price you should be willing to pay for the bond?