Aloha Inc. has 7 percent coupon bonds on the market that have 12 years left to maturity. If the YTM.

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Aloha Inc. has 7 percent coupon bonds on the market that have 12 years left to maturity. If the YTM.

Aloha Inc. has 7 percent coupon bonds on the market that have 12 years left to maturity. If the YTM on these bonds is 8.1 percent, what is the current bond price?

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  • AnonymousAnonymous answered this 3 minutes later660 answers• 65% Best Answer
    Particulars Time PVF Amount PV
    Cash Inflows 1.00 0.93 70.00 64.75
    Cash Inflows 2.00 0.86 70.00 59.90
    Cash Inflows 3.00 0.79 70.00 55.41
    Cash Inflows 4.00 0.73 70.00 51.26
    Cash Inflows 5.00 0.68 70.00 47.42
    Cash Inflows 6.00 0.63 70.00 43.87
    Cash Inflows 7.00 0.58 70.00 40.58
    Cash Inflows 8.00 0.5363 70.00 37.54
    Cash Inflows 9.00 0.4961 70.00 34.73
    Cash Inflows 10.00 0.4589 70.00 32.12
    Cash Inflows 11.00 0.4245 70.00 29.72
    Cash Inflows 12.00 0.3927 70.00 27.49
    Price of Bond 12.00 0.3927 1,000.00 392.73
    Current Bond Price – 917.53