A 10-year 1,000 par value bond has coupons at the rate of X%, payable semiannually. The bond is redeemed at par and priced to yield 8 per year compounded semi-annually. The price of the bond is 1,135.90. Determine X. Possible Answers A 3% B 5% с D E 6% 8% 10%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A 10-year 1,000 par value bond has coupons at the rate of X%, payable semiannually. The bond is redeemed at par and priced to yield 8%
per year compounded semi-annually. The price of the bond is 1,135.90.
Determine X.
Possible Answers
B 5%
U
3%
E
6%
D 8%
10%
Transcribed Image Text:A 10-year 1,000 par value bond has coupons at the rate of X%, payable semiannually. The bond is redeemed at par and priced to yield 8% per year compounded semi-annually. The price of the bond is 1,135.90. Determine X. Possible Answers B 5% U 3% E 6% D 8% 10%
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