Suppose ABC Co. issues $12.27 million of 18 year zero coupon bonds today. If investors require a return of 6.82 percent compounded semiannually and all the bonds remain outstanding until they mature, how much (in $ millions) will ABC have to pay to redeem the bonds. Answer in millions to two decimals - ie, if you get $50,268,382, you should enter 50.27.
Suppose ABC Co. issues $12.27 million of 18 year zero coupon bonds today. If investors require a return of 6.82 percent compounded semiannually and all the bonds remain outstanding until they mature, how much (in $ millions) will ABC have to pay to redeem the bonds. Answer in millions to two decimals - ie, if you get $50,268,382, you should enter 50.27.
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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Assume all bonds have a face or par value of 1,000 unless told otherwise
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