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Jim purchased a 10 year par value bond with an annual nominal coupon rate of S payable semlannually at a price of 1200. The bond can be called at par value X on any coupon date starting at the end of year 6. The lowest yield rate that Jinm can possibly receive is an annual nominal rate of 8% convertible semiannually Calculate X. O a. 1425 O b. 1507 Oc. 1286 Od. 1637 O e. 1318

Jim purchased a 10 year par value bond with an annual nominal coupon rate of S payable semlannually at a price of 1200. The bond can be called at par value X on any coupon date starting at the end of year 6. The lowest yield rate that Jinm can possibly receive is an annual nominal rate of 8% convertible semiannually Calculate X. O a. 1425 O b. 1507 Oc. 1286 Od. 1637 O e. 1318

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
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Jim purchased a 10 year par value bond with an annual nominal coupon rate of S% payable semlannually at a price of 1200. The bond can be called at par value X on ary coupon date starting at the end of year 6. The towest yield rate that Jim can possibly receive is an annual nominal rate of 8% convertible semiannually. Calculate X. O a. 1425 O b. 1507 Oc 1286 O d. 1637 O e. 1318
Transcribed Image Text:Jim purchased a 10 year par value bond with an annual nominal coupon rate of S% payable semlannually at a price of 1200. The bond can be called at par value X on ary coupon date starting at the end of year 6. The towest yield rate that Jim can possibly receive is an annual nominal rate of 8% convertible semiannually. Calculate X. O a. 1425 O b. 1507 Oc 1286 O d. 1637 O e. 1318
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