Essex Biochemical Co has a $1000 par value bond outstanding that pays 10% annual interest.The current yield to maturity on such bonds in the market is 7%. Compute the price of bonds for these maturity dates:
A. 30 yrs
B. 15 yrs.
C. 1 year.
SOLUTION PREVIEW
SOLUTION PREVIEW
A.
= 100*[1-1/ (1+0.07)^30]/0.07
+
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