Years to maturity 25 Par value of bond $1,000.00 Coupon rate 10.00% Frequency interest paid per year 2 Effective annual rate 9.70% Interest rate per period 0.00% Par value of bond $1,000.00 You are considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. If you require an "effective" annual interest rate (not a nominal rate) of 9.7%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. S

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
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Years to maturity 25 Par value of bond $1,000.00 Coupon rate 10.00% Frequency interest paid per year 2
Effective annual rate 9.70% Interest rate per period 0.00% Par value of bond $1,000.00 You are
considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually.
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform
the required analysis to answer the question below. If you require an "effective" annual interest rate (not a
nominal rate) of 9.7%, how much should you be willing to pay for the bond? Do not round intermediate
steps. Round your answer to the nearest cent. S
Transcribed Image Text:Years to maturity 25 Par value of bond $1,000.00 Coupon rate 10.00% Frequency interest paid per year 2 Effective annual rate 9.70% Interest rate per period 0.00% Par value of bond $1,000.00 You are considering a 25-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. If you require an "effective" annual interest rate (not a nominal rate) of 9.7%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent. S
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