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Guggenheim, Incorporated, has a bond outstanding with a coupon rate of 7.3 percent and annual payments. The yield to maturity is 8.5 percent and the bond matures in 21 years. What is the market price if the bond has a par value of $2,000

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Based on the coupon rate of Guggenheim Inc's bond as well as its yield to maturity, the market price is $1,768.55.

What is the market price of the bond?

First, find the coupon amount:

= 7.3% x 2,000

= $146

The market price is:

= ( 146 x (1 - (1 + 8.5%)⁻²¹) / 8.5%)  + 2,000 / (1 + 8.5%)²¹

= 1,407.97 + 360.58

= $1,768.55

Find out more on bond pricing at https://brainly.com/question/25596583.

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