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"Lincoln Park Co. has a bond outstanding with a coupon rate of 5.76 percent and semiannual payments. The yield to maturity is 6.3 percent and the bond matures in 21 years. What is the market price if the bond has a par value of $2,000?Multiple Choicea. $1,876.09b. $1,880.53c. $1,878.06d. $1,912.67e. 1,875.17"

1 Answer

2 votes

Answer:

e. 1,875.17"

Step-by-step explanation:

When you applied to the cash flow the yield to maturity 6,3% you get a market price of $1,875,17.

VNA $1,875,17

$2,000

1 $ 58

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21 $ 2.058