Thirteen years ago, you purchased a bond with a 20-year maturity, a $1,000 par value, a 10% nominal coupon rate, with semi-annual coupon payments. The economy interest rate is currently 3% per half year. The first payment is due immediately, and there are 7 more years of semi-annual payments remaining. What is the current market value of the bond (within $10)? Question 10 options: 1216 1236 1256 1276 None of the above
Thirteen years ago, you purchased a bond with a 20-year maturity, a $1,000 par value, a 10% nominal coupon rate, with semi-annual coupon payments. The economy interest rate is currently 3% per half year. The first payment is due immediately, and there are 7 more years of semi-annual payments remaining. What is the current market value of the bond (within $10)? Question 10 options: 1216 1236 1256 1276 None of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Thirteen years ago, you purchased a bond with a 20-year maturity, a $1,000 par value, a 10% nominal coupon rate, with semi-annual coupon payments. The economy interest rate is currently 3% per half year. The first payment is due immediately, and there are 7 more years of semi-annual payments remaining. What is the current market
Question 10 options:
|
1216 |
|
1236 |
|
1256 |
|
1276 |
|
None of the above |
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