A bond, paying semi-annual coupons of $42, is purchased at a discount to yield j2 9%. The book value adjustment in the 8th coupon period is $8.07. What is the purchase price of this bond?

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
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A bond, paying semi-annual coupons of $42, is
purchased at a discount to yield j2
9%. The book
value adjustment in the 8th coupon period is $8.07. What
is the purchase price of this bond?
Transcribed Image Text:A bond, paying semi-annual coupons of $42, is purchased at a discount to yield j2 9%. The book value adjustment in the 8th coupon period is $8.07. What is the purchase price of this bond?
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