The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.2%, then the price that this bond trades for will be closest to: A. $5,437 B. $4,531 C. $3,625 D. $6,344

The Sisyphean Company has a bond outstanding with a face value of $5,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.2%, then the price that this bond trades for will be closest to: A. $5,437 B. $4,531 C. $3,625 D. $6,344

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 13P

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