A bond has a yield to maturity (YTM) of 5%, with a maturity of 30 years, the coupon payment is $25 dollars paid semi-annually. Given that the PAR of the bond is $1,000, what is the price of the bond? Multiple Choice $7,799.58 $526.77 $1,000.00 $772.72
A bond has a yield to maturity (YTM) of 5%, with a maturity of 30 years, the coupon payment is $25 dollars paid semi-annually. Given that the PAR of the bond is $1,000, what is the price of the bond? Multiple Choice $7,799.58 $526.77 $1,000.00 $772.72
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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![A bond has a yield to maturity (YTM) of 5%, with a maturity of 30 years, the coupon payment is $25 dollars paid semi-annually. Given that the PAR of the
bond is $1,000, what is the price of the bond?
Multiple Choice
$7,799.58
$526.77
$1,000.00
$772.72](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe54e912d-c9ca-4bcd-b1b6-524772df2b92%2F5d8d344f-de9f-4325-9436-63712e4c685c%2F3f3xwoo.png&w=3840&q=75)
Transcribed Image Text:A bond has a yield to maturity (YTM) of 5%, with a maturity of 30 years, the coupon payment is $25 dollars paid semi-annually. Given that the PAR of the
bond is $1,000, what is the price of the bond?
Multiple Choice
$7,799.58
$526.77
$1,000.00
$772.72
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