question archive Problem 7-1 Bond valuation Madsen Motors's bonds have 19 years remaining to maturity
Problem 7-1 Bond valuation Madsen Motors's bonds have 19 years remaining to maturity
Subject:FinancePrice: Bought3
Problem 7-1
Bond valuation
Madsen Motors's bonds have 19 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9.5%; and the yield to maturity is 13%. What is the bond's current market price? Round your answer to the nearest cent.
$
