Explore BrainMass

Explore BrainMass

    Suppose Hillard Manufacturing sold an issue of bonds with a

    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!

    Suppose Hillard Manufacturing sold an issue of bonds with a 10 year maturity a $1000 par value a 10% cupon rate and semiannual interest payments.

    Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell?

    © BrainMass Inc. brainmass.com March 4, 2021, 11:47 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/suppose-hillard-manufacturing-sold-an-issue-of-bonds-with-a-453896

    Solution Preview

    Suppose Hillard Manufacturing sold an issue of bonds with a 10 year maturity a ...

    Solution Summary

    Suppose Hillard Manufacturing sold an issue of bonds with a 10 year maturity a $1000 par value a 10% cupon rate and semiannual interest payments.

    Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell?

    $2.49

    ADVERTISEMENT