Suppose that a 15-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1.7 percent per coupon. If the last coupon is for 80 dollars and the yield rate is 8.2 percent convertible semiannually, what is the book value of the bond immediately after the 11th coupon is paid? Answer= dollars.
Suppose that a 15-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1.7 percent per coupon. If the last coupon is for 80 dollars and the yield rate is 8.2 percent convertible semiannually, what is the book value of the bond immediately after the 11th coupon is paid? Answer= dollars.
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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Qd 38.
Transcribed Image Text:Suppose that a 15-year bond with a face value of 3000 dollars is redeemable at par and pays semiannual coupons that increase by 1.7 percent per coupon. If the last
coupon is for 80 dollars and the yield rate is 8.2 percent convertible semiannually, what is the book value of the bond immediately after the 11th coupon is paid?
Answer=
dollars.
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