Problem:
The Cougar Corporation has issued 20-year semi-annual coupon bonds with a face value of $1,000. If the annual coupon rate is 10% and the current yield to maturity is 12%,
Required:
Question: What is the firm's current price per bond?
- $850.61
- $849.54
- $1,170.27
- $1,171.59
Note: Please explain comprehensively and give step by step solution.