Problema 1000 par value bond was issued 15 years ago at a, Ask an Expert

Accounting

Problem:

A $1,000 par value bond was issued 15 years ago at a 11.50 percent coupon rate. It currently has 5 years remaining to maturity. Interest rates on similar debt obligations are now 6.50 percent.

Required:

Question: What is the current price of the bond?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169099

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