A bond with a par value of 1000 and 6% semiannual coupons is redeemable for 1100. You are given: i. the bond is purchased at P to yield 8%, convertible semiannually and ii. the amount of principal adjustment for the 16th semiannual period is 5. Calculate P. A)760 B)770 C)790 D)800 E)820 Please answer fast i give you upvote.
A bond with a par value of 1000 and 6% semiannual coupons is redeemable for 1100. You are given: i. the bond is purchased at P to yield 8%, convertible semiannually and ii. the amount of principal adjustment for the 16th semiannual period is 5. Calculate P. A)760 B)770 C)790 D)800 E)820 Please answer fast i give you upvote.
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 with a par value of 1000 and 6% semiannual coupons is redeemable for 1100.
You are given:
i. the bond is purchased at P to yield 8%, convertible semiannually and
ii. the amount of principal adjustment for the 16th semiannual period is 5.
Calculate P.
A)760
B)770
C)790
D)800
E)820
Please answer fast i give you upvote.
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