On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price) O $1.152.74 O$1,154.11 O $1.155.30 O $1.156.25 O$1,158.85
On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price) O $1.152.74 O$1,154.11 O $1.155.30 O $1.156.25 O$1,158.85
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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![On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The
company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon
rate, years to maturity, and yield to maturity to compute the bond price.)
$1.152.74
O $1,15411
$1.155.30
$1.156.25
O$1,158.85](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e8c5b27-b325-4a33-b7f6-bbf8de8f8f41%2F23e81616-3d3d-4b38-888b-d72157d08e67%2Fwuu908_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 7.4536" in the WSJ and has a par value of $1,000. The
company pays coupon interests every 6 months. If you require a 5.8% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon
rate, years to maturity, and yield to maturity to compute the bond price.)
$1.152.74
O $1,15411
$1.155.30
$1.156.25
O$1,158.85
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