Assignment: Global capital markets & finance Bonds pricing Today is Oct, 2nd 2020. You want to purchase an Amazon bond with a face value of 1,000 USD which matures on Oct. 1st 2025. Its Moody's rating is Aa2 , and it carries an annual coupon of 3.375%. Assume a required return/ opportunity cost of 2.5%. What is the current price of the bond today?

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
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Assignment: Global capital markets & finance
Bonds pricing
Today is Oct, 2nd 2020. You want to purchase an Amazon bond with a face value of 1,000
USD which matures on Oct. 1st 2025. Its Moody's rating is Aa2 , and it carries an annual
coupon of 3.375%. Assume a required return/ opportunity cost of 2.5%. What is the current
price of the bond today?
Transcribed Image Text:Assignment: Global capital markets & finance Bonds pricing Today is Oct, 2nd 2020. You want to purchase an Amazon bond with a face value of 1,000 USD which matures on Oct. 1st 2025. Its Moody's rating is Aa2 , and it carries an annual coupon of 3.375%. Assume a required return/ opportunity cost of 2.5%. What is the current price of the bond today?
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