Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 7.55%. The bond has a face value of $1000, and it makes semiannual interest payments. If you require an 13.20% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Round your answer to two decimal places
Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 7.55%. The bond has a face value of $1000, and it makes semiannual interest payments. If you require an 13.20% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? Round your answer to two decimal places
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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Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 7.55%. The bond has a face value of $1000, and it makes semiannual interest payments. If you require an 13.20% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
Round your answer to two decimal places
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