Amcor limited has a corporate bond outstanding with a 7%coupon semi annual inter

Question

Amcor limited has a corporate bond outstanding with a 7%coupon semi annual interest 15 years to maturity and face value of $1000.similar bond currently yield 13% but prior agreement company will skip the coupon payments in years 6,7 and 8( 6 payments in total ,the payments in time 6 through to 8.5)These payments will be repaid without interest at maturity.What is the bond value? Amcor limited has a corporate bond outstanding with a 7%coupon semi annual interest 15 years to maturity and face value of $1000.similar bond currently yield 13% but prior agreement company will skip the coupon payments in years 6,7 and 8( 6 payments in total ,the payments in time 6 through to 8.5)These payments will be repaid without interest at maturity.What is the bond value?

Explanation / Answer

Based on the information given, the bond value works out to $ 608.24.

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