Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 3.5 years. How much will you receive for your bond if the market yield to maturity is currently 6.19 percent? Ignore any accrued interest. Assume semi-annual compounding.
Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 3.5 years. How much will you receive for your bond if the market yield to maturity is currently 6.19 percent? Ignore any accrued interest. Assume semi-annual compounding.
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
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Questions 1.
- Today, you want to sell a $1,000 face
value zero coupon bond you currently own. The bond matures in 3.5 years. How much will you receive for your bond if the market yield to maturity is currently 6.19 percent? Ignore any accrued interest. Assume semi-annual compounding.
- The All-Bright Co. has earnings of $4.18 per share. The benchmark Price to Earnings (PE) for the company is 16. What stock price would you consider appropriate? What if the benchmark PE were 21?
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