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Grohl Co. issued 11-year bonds a year ago at a coupon rate of 6.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 7.4

This question was answered on Jan 31, 2013. View the Answer
Grohl Co. issued 11-year bonds a year ago at a coupon rate of
6.9 percent. The bonds make semiannual payments. If the YTM on these bonds is
7.4 percent, what is the current bond price?
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8426729.xlsx

SOLUTION:
Nper
Face Value (assumed)
Future Value (assumed)
Coupon Rate
Rate (Yield to Maturity) 22.00
$1,000.00
$1,000.00
3.45%
3.70% PMT = Face Value * Coupon Rate
PMT = $1,000 * 3.45%
PMT
Current...

This question was asked on Jan 30, 2013 and answered on Jan 31, 2013.

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