EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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A bank has an outstanding bond issue with a face value of $ 1000 per bond and three years to
maturity. Interest is payable annually. The bonds are privately held by a pension fund that
wishes to sell them to another party. It estimates that, in the current market conditions, the
bonds should provide nominal return of 14%. Calculate the price of the bond that should be
realized on the sale?
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Transcribed Image Text:A bank has an outstanding bond issue with a face value of $ 1000 per bond and three years to maturity. Interest is payable annually. The bonds are privately held by a pension fund that wishes to sell them to another party. It estimates that, in the current market conditions, the bonds should provide nominal return of 14%. Calculate the price of the bond that should be realized on the sale?
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ISBN:9781337514835
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