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Builtrite bonds have the following: 4 %2% coupon, 16 years until maturity, $1000 par and are currently selling at $965. If you would be happy to make an 5% return, what would you be willing co pay for the bond?

Builtrite bonds have the following: 4 %2% coupon, 16 years until maturity, $1000 par and are currently selling at $965. If you would be happy to make an 5% return, what would you be willing co pay for the bond?

Essentials Of Investments
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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Builtrite bonds have the following: 4 %2% coupon, 16 years until maturity, $1000 par and are currently selling at $965. If you would be happy to make an 5% return, what would you be willing to pay for the bond? O $927 O $946 O $972 $988
Transcribed Image Text:Builtrite bonds have the following: 4 %2% coupon, 16 years until maturity, $1000 par and are currently selling at $965. If you would be happy to make an 5% return, what would you be willing to pay for the bond? O $927 O $946 O $972 $988
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