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Calculate the price of this bond if the YTM is

Calculate the price of this bond if the YTM is

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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Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 18 years Coupon rate: 6 percent Semiannual payments FILL IN YOUR ANSWER WITH A COMMA FOR THOUSANDS AND A DOT FOR DECIMALS, do not fill in any currency sign ($,€ etc). So for instance, One-hundred-thousand-and-fourty euros and 50 cents would be 100,040.50. For percentages use a dot and NO % sign. For instance if you think an answer is seven per cent and 22 hundredths, write 7.22 Required: Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): a. 6 percent b. 9 percent c. 3 percent
Transcribed Image Text:Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 18 years Coupon rate: 6 percent Semiannual payments FILL IN YOUR ANSWER WITH A COMMA FOR THOUSANDS AND A DOT FOR DECIMALS, do not fill in any currency sign ($,€ etc). So for instance, One-hundred-thousand-and-fourty euros and 50 cents would be 100,040.50. For percentages use a dot and NO % sign. For instance if you think an answer is seven per cent and 22 hundredths, write 7.22 Required: Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): a. 6 percent b. 9 percent c. 3 percent
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