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View Full Version : The bonds have a 4.0% coupon rate, payable semiannually, and a par value of $1,000.


DaElle77
Mar 10, 2010, 11:03 PM
They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?

morgaine300
Mar 11, 2010, 03:02 AM
Here's a couple of threads where I've gone over the basics of this. Give them a read and then give it a shot.

https://www.askmehelpdesk.com/finance/how-do-you-compute-current-price-bonds-200150.html
https://www.askmehelpdesk.com/finance-accounting/computing-bond-price-199941.html