3. A $800,000 face-value bond matures in four years and pays 6% per year payable quarterly An investor wants a 12% retum per year compounded. How much should the investor pay for the bond? a

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
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3. A $800,000 face-value bond matures in four years and pays 6% per year payable quarterly An investor wants a
12% retum per year compounded.
How much should the investor pay for the bond?
a
Transcribed Image Text:3. A $800,000 face-value bond matures in four years and pays 6% per year payable quarterly An investor wants a 12% retum per year compounded. How much should the investor pay for the bond? a
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