An investor purchases a 30-year bond with a face amount of 1000 and annual coupon rate of 8% paid semi-annually. The bond is callable at its face value any time following the coupon payment occurring at the end of the 15th year. The bond is bought at a premium based on an annual effective yield rate of 7%. Calculate the purchase price of the bond. 1067 1104 1132 1141 1154

An investor purchases a 30-year bond with a face amount of 1000 and annual coupon rate of 8% paid semi-annually. The bond is callable at its face value any time following the coupon payment occurring at the end of the 15th year. The bond is bought at a premium based on an annual effective yield rate of 7%. Calculate the purchase price of the bond. 1067 1104 1132 1141 1154

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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