G-Dawg, Inc. plans to issue a $5000 par value bond that will mature exactly 17 years from today. The bond will have a coupon rate of 8.86%, and it will make quarterly (i.e., 4 times per year) coupon payments. If the yield to maturity for the bond is 7.48% what will the price of the bond be? 1 ) $5.660.76 2 ) $ 5,530.37 3 ) None of the answers in this list is within $0.20 of the correct answer . 4 ) $ 5,533.05 5 ) $ 5,500.89 6 $ 5,521.19
G-Dawg, Inc. plans to issue a $5000 par value bond that will mature exactly 17 years from today. The bond will have a coupon rate of 8.86%, and it will make quarterly (i.e., 4 times per year) coupon payments. If the yield to maturity for the bond is 7.48% what will the price of the bond be? 1 ) $5.660.76 2 ) $ 5,530.37 3 ) None of the answers in this list is within $0.20 of the correct answer . 4 ) $ 5,533.05 5 ) $ 5,500.89 6 $ 5,521.19
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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G-Dawg, Inc. plans to issue a $5000 par value bond that will mature exactly 17 years from today. The bond will have a coupon rate of 8.86%, and it will make quarterly (i.e., 4 times per year) coupon payments. If the yield to maturity for the bond is 7.48% what will the price of the bond be? 1 ) $5.660.76 2 ) $ 5,530.37 3 ) None of the answers in this list is within $0.20 of the correct answer . 4 ) $ 5,533.05 5 ) $ 5,500.89 6 $ 5,521.19
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