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Finance...?
Finance...?
I'm studying for finals and looking over an old test. Its multiple choice and she circled the correct answer but i keep getting $928.39. Can someone please explain how i answer this problem? Thanks in advance...heres the question:
The Carter Company's bonds that mature in 12 years have a par value of $1,000 and a coupon rate of 8%, with semi-annual coupon payments. The market interest rate for the bonds is 9% What is the price of these bonds?
She has 927.52 marked as the correct answer but for some reason i think i remember her saying that she screwed it up and that 928.39 is the correct answer...ill double check on it and let you know if your still interested...if anyone can figure out how it was 927.52 please let me know
ill keep ya posted...
Answers:
MattMan: i'm getting 928.39 as well. What did she say was the correct answer??
I tried really hard to get the 927... but I couldn't get to it. I think you're right; she made a mistake.
Thanks for coming back with the info again tho.
2006-12-09 19:17:06