What is the price of this annual coupon bond

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Reference no: EM131014818

AAA firm’s semiannual bond has 12 years maturity and coupon rate of 8.75% semiannually. The firm also sells annual bonds with all the same condition except the coupon is paid annually (means ytm is the same). What is the price of this annual coupon bond?(hint: the two bonds should offer the same annual effective rate, not semi-rate * 2

?Solve with financial calculator : PV= FV= PMT= I= etc.

Reference no: EM131014818

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