Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of $1,000. The going interest rate is 5.50%, based on semi-annual compounding. What is the bond's price? Select one: a. $1,211.90 b. $1,253.11 c. $1,200.44 d. $1,295.85

Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a par value of $1,000. The going interest rate is 5.50%, based on semi-annual compounding. What is the bond's price? Select one: a. $1,211.90 b. $1,253.11 c. $1,200.44 d. $1,295.85

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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Question

Miles Corporation's bonds have a 15-year maturity, an 8% semi-annual coupon, and a
par value of $1,000. The going interest rate is 5.50%, based on semi-annual
compounding. What is the bond's price?
Select one:
a. $1,211.90
b. $1,253.11
c. $1,200.44
d. $1,295.85

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