A bond has a time to maturity of 12 years, a coupon rate of 5% with interest paid quarterly, a current price of $850, and a yield to maturity of 12%. What is the price of the bond today? Group of answer choices 513.53 521.53 531.53 510.53
A bond has a time to maturity of 12 years, a coupon rate of 5% with interest paid quarterly, a current price of $850, and a yield to maturity of 12%. What is the price of the bond today? Group of answer choices 513.53 521.53 531.53 510.53
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
A bond has a time to maturity of 12 years, a coupon rate of 5% with interest paid quarterly, a current price of $850, and a yield to maturity of 12%. What is the price of the bond today?
Group of answer choices
513.53
521.53
531.53
510.53
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