Answered: A bond, paying semi-annual coupons of…

A bond, paying semi-annual coupons of $42, is purchased at a discount to yield j2 9%. The book value adjustment in the 8th coupon period is $8.07. What is the purchase price of this bond?

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, paying semi-annual coupons of $42, is
purchased at a discount to yield j2
9%. The book
value adjustment in the 8th coupon period is $8.07. What
is the purchase price of this bond?

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