Determine the purchase price at the indicated time before maturity of the following bond redeemed at par shown in thetable below.Par ValueBond RatePayable Semi-Annually$9,0009.5%Time Before Maturity9 yearsYield RateConversion Period9%semi-annuallyThe purchase price of the bond is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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Answered: Determine the purchase price at the…

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 Macaulay duration of an 11%, $1,000 par bond that matures in three years if the bond's YTM is 12% and interest is paid semiannually. Calculate this bond's modified duration. Do not round intermediate calculations. Round your answer to two decimal places. years Assuming the bond's YTM goes from 12% to 11.0%, calculate an estimate of the price change. Do not round intermediate calculations. Round your answer to three decimal places. Use a minus sign to enter negative value, if any. %
a 29000 bond with interest at 5.1% payable semi annually and redeemable ar par is bought two years before maturity to yield 7.8% compunded semi annually. complete the premium or discount and the purchase price and construct the appropriate bond schedule
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A $27,000 bond with interest at 5.3% payable semi-annually and redeemable at par is bought two years before maturity to yield 6.6% compounded semi-annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.
s
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