Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40. If you require a 10 percent simple yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? * O $761 $619

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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Assume that you wish to purchase a 20-year bond that has a maturity value of
$1,000 and makes semiannual interest payments of $40. If you require a 10
percent simple yield to maturity on this investment, what is the maximum price
you should be willing to pay for the bond? *
$761
$619
$828
$674
$902
Transcribed Image Text:Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40. If you require a 10 percent simple yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? * $761 $619 $828 $674 $902
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