You own a bond redeemable for $400 in 8 years. You just have received a coupon of amount c and each subsequent semi-annual coupon will be 4% larger than the preceding coupon. The book value of this bond immediately after you received the colpon is $808.11 using an annual effective yield of 5%. What is the coupon c? 28.31 O29.54 O 31.00 32.28

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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You own a bond redeemable for $400 in 8 years. You just have received a
coupon of amount c and each subsequent semi-annual coupon will be 4%
larger than the preceding coupon. The book value of this bond
immediately after you received the compon is $808.11 using an annual
effective yield of 5%. What is the coupon c?
O 28.31
29.54
O 31.00
32.28
33.62
Transcribed Image Text:You own a bond redeemable for $400 in 8 years. You just have received a coupon of amount c and each subsequent semi-annual coupon will be 4% larger than the preceding coupon. The book value of this bond immediately after you received the compon is $808.11 using an annual effective yield of 5%. What is the coupon c? O 28.31 29.54 O 31.00 32.28 33.62
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