13-year bond with a face value of 2000 dollars earns interest at 9.1 percent convertible semiannually. Suppose that the yield rate is 8 percent convertible semiannually, and that the book value immediately after the 13th coupon payment is 2127.86 dollars. What is the redemption value?
13-year bond with a face value of 2000 dollars earns interest at 9.1 percent convertible semiannually. Suppose that the yield rate is 8 percent convertible semiannually, and that the book value immediately after the 13th coupon payment is 2127.86 dollars. What is the redemption value?
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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A 13-year bond with a face value of 2000 dollars earns interest at 9.1 percent convertible semiannually. Suppose that the yield rate is 8 percent convertible semiannually, and that the book value immediately after the 13th coupon payment is 2127.86 dollars. What is the redemption value?
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