USE FORMULA OR CALCULATOR APPROACH ONLY (NO EXCEL) A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of 5.2% and pays interest twice a year. The annual market interest rate for similar bonds is 3.1%. What is the value of the bond (in $)?
USE FORMULA OR CALCULATOR APPROACH ONLY (NO EXCEL) A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of 5.2% and pays interest twice a year. The annual market interest rate for similar bonds is 3.1%. What is the value of the bond (in $)?
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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USE FORMULA OR CALCULATOR APPROACH ONLY (NO EXCEL)
A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of 5.2% and pays interest twice a year. The annual market interest rate for similar bonds is 3.1%.
What is the value of the bond (in $)?
Transcribed Image Text:3. A corporate bond has 21 years to maturity, a face value of $1,000, a coupon rate of
5.2% and pays interest twice a year. The annual market interest rate for similar bonds is
3.1%. What is the value of the bond (in $)?
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