A $10,000 face value municipal bond pays $1000 interest at the end of every year. If there are 12 more years of payments, at what price today would the bond yield 18% over the next 12 years? (a) $1372 (b) $4793 (c) $6165 (d) $10,000
A $10,000 face value municipal bond pays $1000 interest at the end of every year. If there are 12 more years of payments, at what price today would the bond yield 18% over the next 12 years? (a) $1372 (b) $4793 (c) $6165 (d) $10,000
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 $10,000 face value municipal bond pays $1000 interest at the end of every year. If there are 12 more years of payments, at what price today would the bond yield 18% over the next 12 years? (a) $1372 (b) $4793 (c) $6165 (d) $10,000
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