An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a price of 1000. The annual effective yield rate is 8%, and the annual coupon rate is 6%. Calculate the redemption value of the bond. 1089 O b. 1431 O c 1203 O d. 1192 O e. 1347

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a
price of 1000. The annual effective yield rate is 8%, and the annual coupon rate is 6%.
Calculate the redemption value of the bond.
Oa.
1089
O b. 1431
Oc 1203
O d. 1192
O e. 1347
Transcribed Image Text:An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a price of 1000. The annual effective yield rate is 8%, and the annual coupon rate is 6%. Calculate the redemption value of the bond. Oa. 1089 O b. 1431 Oc 1203 O d. 1192 O e. 1347
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