Bond valuation - Quarterly interest Calculate the value of a $1,000-par-value bond paying quarterly interest at an annual coupon interest rate of 11% and having 13 years until maturity if the required return on similar-risk bonds is currently a 15% annual rate The present value of the bond is $ 772.65 (Round to the nearest cent.)

Bond valuation - Quarterly interest Calculate the value of a $1,000-par-value bond paying quarterly interest at an annual coupon interest rate of 11% and having 13 years until maturity if the required return on similar-risk bonds is currently a 15% annual rate The present value of the bond is $ 772.65 (Round to the nearest cent.)

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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Determine the market price of a $485,000, 10-year, 8% (pays interest semiannually) bond issue sold to yield an effective rate of 10%. What is the market price?

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