Jenna does not drink alcohol and when she meets clients for dinner she knows that while the client might enjoy a glass of wine w
1 answer:
You might be interested in
Answer:
current price = $1191.79
Explanation:
given data
time t = 15 year
annual coupon bonds rate = = 7.5 %
par value = $1000
interest rate = 5.5%
maturity time = 14 year
to find out
current price of the bonds
solution
we get here first annual coupon rate = 7.5% of 1000
annual coupon rate C = $75
so now we get current price of bond
current price of the bonds = .................1
put here value
current price =
current price =
solve it we get
current price = $1191.79