This textbook is available at## Fundamentals of Financial Management (15th Edition)

Book Edition | 15th Edition |

Author(s) | Brigham |

ISBN | 9781337395250 |

Publisher | Cengage Learning |

Subject | Finance |

SelfTest

Self-Test Questions and Problems

Questions

Problems

Comprehensive/Spreadsheet Problem

Integrated Case

Chapter 7, Section 7-5, SelfTest, Exercise 08

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Last year a firm issued 20-year, 8% annual coupon bonds at a par value of $1,000.

- Suppose that 1 year later the going market interest rate drops to 6%. What is the new price of the bonds, assuming they now have 19 years to maturity?
**($1,223.16)** - Suppose that 1 year after issue, the going market interest rate is 10% (rather than 6%). What would the price have been?
**($832.70)**

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