An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 2%. The bonds currently yield 3% p.a. effective in the market. Calculate the price of a single bond £ Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 0.5% p.a. £ Enter your answer correct to £100
An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 2%. The bonds currently yield 3% p.a. effective in the market. Calculate the price of a single bond £ Enter your answer as a decimal correct to 2 decimal places Calculate the net present value of the bond investment project at an interest rate of 0.5% p.a. £ Enter your answer correct to £100
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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An investor uses £100,000 to buy 7-year bonds with a face value of £100. The bonds pay coupons semi-annually at a rate of 2%.
The bonds currently yield 3% p.a. effective in the market.
Calculate the price of a single bond
£
Enter your answer as a decimal correct to 2 decimal places
Calculate the
£
Enter your answer correct to £100
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