Explore BrainMass

Explore BrainMass

    the present value or current market price of bonds

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Callaghan Motors bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current market price of these bonds?

    © BrainMass Inc. brainmass.com December 24, 2021, 5:10 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/the-present-value-or-current-market-price-of-bonds-33059

    Solution Summary

    The present value or current market price of these bonds is determined.

    $2.49

    ADVERTISEMENT