You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65 every 6 months. If your nominal annual required rate of return is 11.6 percent with semiannual compounding, how much should you be willing to pay for this bond? $1.106.94 O $1.076.94 $1.086.94 $1,096.94 $1,066.94

You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65 every 6 months. If your nominal annual required rate of return is 11.6 percent with semiannual compounding, how much should you be willing to pay for this bond? $1.106.94 O $1.076.94 $1.086.94 $1,096.94 $1,066.94

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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Question

You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65
every 6 months. If your nominal annual required rate of return is 11.6 percent with
semiannual compounding, how much should you be willing to pay for this bond?
$1,106.94
$1,076.94
$1,086.94
$1,096.94
$1,066.94

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