You intend to purchase a 13-year, $1,000 face value bond that pays interest of $65 every 6 months. If your nominal annual required rate of return is 12.6 percent with semiannual compounding, how much should you be willing to pay for this bond? $965.26 $945.26 O $1,005.26 O $985.26 $1,025.26

You intend to purchase a 13-year, $1,000 face value bond that pays interest of $65 every 6 months. If your nominal annual required rate of return is 12.6 percent with semiannual compounding, how much should you be willing to pay for this bond? $965.26 $945.26 O $1,005.26 O $985.26 $1,025.26

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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You intend to purchase a 13-year, $1,000 face value bond that pays interest of $65
every 6 months. If your nominal annual required rate of return is 12.6 percent with
semiannual compounding, how much should you be willing to pay for this bond?
O $965.26
O $945.26
O $1,005.26
$985.26
$1,025.26

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