A bond has a face value of $20, 000 and matures in 10 ye ars. The nominal interest rate is 8.5%. What is the price of the bond to yield a true interest rate of 8%.
A bond has a face value of $20, 000 and matures in 10 ye ars. The nominal interest rate is 8.5%. What is the price of the bond to yield a true interest rate of 8%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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plz do not use plagiarism and copy from other source otherwise i will report
Transcribed Image Text:A bond has a face value of $20, 000 and matures in 10 ye ars. The
nominal interest rate is 8.5%. What is the price of the bond to yield
a true interest rate of 8%.
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