Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 9 years. Their par value is $1,000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually? (Round to the nearest cent.) a. If the interest is paid semiannually, the value of the bond is $____ enter your response here. (Round to the nearest cent.)
Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 9 years. Their par value is $1,000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the interest is paid annually? (Round to the nearest cent.) a. If the interest is paid semiannually, the value of the bond is $____ enter your response here. (Round to the nearest cent.)
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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(Bond valuation)
Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid semiannually, and the bonds mature in 9 years. Their par value is $1,000. If your required
percent, what is the value of the bond? What is the value if the interest is paid annually?
(Round to the nearest cent.)
a. If the interest is paid semiannually, the value of the bond is $____ enter your response here.
(Round to the nearest cent.)
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