Given the following ATT Ltd. bond information: $1000 par value, maturity 2023 Dec 22, semi-annual coupon 7.75 percent, price 105.50 and yield 7.4 percent. How much would a $1000 par value ATT Ltd. bond cost as of the day of this listing?

Question

Quizplus · Accepted Answer

The bond is selling for a price of 105.50 which means that for every $100 in face value, the bond is selling for $105.50. Therefore, for a $1000 face value bond, the cost would be $1000 x 1.055 = $1055.

Given the Following ATT Ltd