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Price of bonds for Nungesser Corporation

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Nungesser Corporation has issued bonds that have a 9% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000 and a yield to maturity of 8.5%. What is the price of the bonds?

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Solution Summary

This solution explains how to calculate the price of a bond using simple calculation and a brief response.

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The current market price is the present value of interest and principal discounted at YTM.

Since it is a semi ...

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