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Calculate the purchase price (flat) of the $1,000 face value bond using the information given below. calculations. Round your final answer to 2 decimal places.) Issue date Jan 1, 2006 . Maturity date Jan 1, 2021 Purchase date Coupon rate (%) Market rate (%) April 15, 2006 4.0 4.5 Assume that: • Bond interest is paid semiannually. . The bond was originally issued at its face value. . Bonds will be redeemed for their face value at maturity. • Market rates of return and yields to maturity are compounded semiannually.

Calculate the purchase price (flat) of the $1,000 face value bond using the information given below. calculations. Round your final answer to 2 decimal places.) Issue date Jan 1, 2006 . Maturity date Jan 1, 2021 Purchase date Coupon rate (%) Market rate (%) April 15, 2006 4.0 4.5 Assume that: • Bond interest is paid semiannually. . The bond was originally issued at its face value. . Bonds will be redeemed for their face value at maturity. • Market rates of return and yields to maturity are compounded semiannually.

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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Calculate the purchase price (flat) of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Jan 1, 2006 Maturity date Jan 1, 2021 Purchase date April 15, 2006 $ Coupon rate (%) Market rate (%) 4.0 4.5 Assume that: . Bond interest is paid semiannually. . The bond was originally issued at its face value. . Bonds will be redeemed for their face value at maturity. • Market rates of return and yields to maturity are compounded semiannually. Purchase price
Transcribed Image Text:Calculate the purchase price (flat) of the $1,000 face value bond using the information given below. (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Issue date Jan 1, 2006 Maturity date Jan 1, 2021 Purchase date April 15, 2006 $ Coupon rate (%) Market rate (%) 4.0 4.5 Assume that: . Bond interest is paid semiannually. . The bond was originally issued at its face value. . Bonds will be redeemed for their face value at maturity. • Market rates of return and yields to maturity are compounded semiannually. Purchase price
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