Homework answers / question archive / The Company is issuing 10,000 bonds, each with a face value of $975, a stated rate of 8

The Company is issuing 10,000 bonds, each with a face value of $975, a stated rate of 8

Finance

Share With

The Company is issuing 10,000 bonds, each with a face value of $975, a stated rate of 8.5%, and a 20-year term. When the bonds are issued, the market rate is 7.1%.

1. What is the maximum price an investor will pay for a single bond?