You Answered Correct Answer John is considering acquiring a couple of Citigroup bonds, which were initially offered with a face value of $1000, a coupon rate of 11% per year (paid semiannually), and a maturity of 10 years. However, these bonds already paid 5 coupons and John is planning to buy them now, right before the next coupon payment (hence coupon received at John's time "zero"). Find the pure price of each Citigroup bond if the current market interest rate for similar financial assets is 7% per year (compounded semiannually). Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas. 1,329.19 1,273.41 margin of error +/- 30
You Answered Correct Answer John is considering acquiring a couple of Citigroup bonds, which were initially offered with a face value of $1000, a coupon rate of 11% per year (paid semiannually), and a maturity of 10 years. However, these bonds already paid 5 coupons and John is planning to buy them now, right before the next coupon payment (hence coupon received at John's time "zero"). Find the pure price of each Citigroup bond if the current market interest rate for similar financial assets is 7% per year (compounded semiannually). Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas. 1,329.19 1,273.41 margin of error +/- 30
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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Please answer fast please arjent help please ASAP pls answer fast please arjent help please please show how to get the correct answer of 1,273.41, please dont answer if you cant get the correct answer shown above.
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Correct Answer
John is considering acquiring a couple of Citigroup bonds, which
were initially offered with a face value of $1000, a coupon rate
of 11% per year (paid semiannually), and a maturity of 10 years.
However, these bonds already paid 5 coupons and John is
planning to buy them now, right before the next coupon
payment (hence coupon received at John's time "zero"). Find the
pure price of each Citigroup bond if the current market interest
rate for similar financial assets is 7% per year (compounded
semiannually). Note: round your answer to two decimal places,
and do not include spaces, currency signs, plus or minus signs,
nor commas.
1,329.19
1,273.41 margin of error +/- 30
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