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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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Consider the following coupon bond issued by XYZ.inc
Term: 1 year
Payment: 125
Face Value: 1.500
Currently the prevailing risk free rate is 0.01 and the market places a risk premium
on XYZ.inc bonds of 0.08
Compute the present value of an XYZ.inc bond?
Record your unitless answer to the-nearest cent.
Your Answer:
Transcribed Image Text:Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 125 Face Value: 1.500 Currently the prevailing risk free rate is 0.01 and the market places a risk premium on XYZ.inc bonds of 0.08 Compute the present value of an XYZ.inc bond? Record your unitless answer to the-nearest cent. Your Answer:
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