Bond question

syhaphom · #1 (**permalink**) 02-12-2010, 08:23 AM

Patel Technologies has two bonds outstanding, a 7 year bond and 16 year bond. The bonds both make semiannual payments, are of equal risk, and have the same YTM. The 7 year bond was originally issued 8 years ago with a 9.2% coupon rate, and it currently sells for $970.25. If the 16 year bond (issued 4 years ago) pays a 10.4% coupon, what is the value of the 16 year bond?

* I really appreciate all the help that you guys give me*

sapphirecapital · #2 (**permalink**) 02-18-2010, 04:20 AM

I suggest you do your homework by yourself, this is a test question and yes it can be solved easily when you read the chapter of the study book

syhaphom · #3 (**permalink**) 02-18-2010, 08:16 AM

This isnt a test question for your information! Hate ppl who think they know everything.

sapphirecapital · #4 (**permalink**) 02-18-2010, 10:18 PM

see the answer on homework help:

http://www.homeworkhelp.biz/Samples/...f%20Sample.pdf