sume that you are considering the purchase an AEP 30-year, bond with an annual coupon rate of 8.22%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 11.45% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? $824.55 $945.01 $904.47 891.25 $727.90
sume that you are considering the purchase an AEP 30-year, bond with an annual coupon rate of 8.22%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 11.45% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? $824.55 $945.01 $904.47 891.25 $727.90
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 4P
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Question
Assume that you are considering the purchase an AEP 30-year, bond with an annual coupon rate of 8.22%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 11.45% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
$824.55
$945.01
$904.47
891.25
$727.90
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