Round all dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percent rounded to one decimal place 28. This morning, Mary bought a ten-year, $1000 par value bond with an 8.25% coupon rate and semi-annual payments. She paid $1082.62 for the bond. If the market interest rate on this type of bond decreases to 6.98% tonight, how much will Mary receive for her first coupon payment? 29. Bluestar Air plans to issue a $1000 par value, 16-year, semi-annual payment bond with an annual coupon rate of 8.60%. If the bond’s yield to maturity is 7.40%, what will Bluestar Air’s bond sell for?
Round all dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percent rounded to one decimal place 28. This morning, Mary bought a ten-year, $1000 par value bond with an 8.25% coupon rate and semi-annual payments. She paid $1082.62 for the bond. If the market interest rate on this type of bond decreases to 6.98% tonight, how much will Mary receive for her first coupon payment? 29. Bluestar Air plans to issue a $1000 par value, 16-year, semi-annual payment bond with an annual coupon rate of 8.60%. If the bond’s yield to maturity is 7.40%, what will Bluestar Air’s bond sell for?
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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Round
all dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percent
rounded to one decimal place
28. This morning, Mary bought a ten-year, $1000 par value bond with an 8.25% coupon rate and semi-annual
payments. She paid $1082.62 for the bond. If the market interest rate on this type of bond decreases to 6.98%
tonight, how much will Mary receive for her first coupon payment?
29. Bluestar Air plans to issue a $1000 par value, 16-year, semi-annual payment bond with an annual coupon rate
of 8.60%. If the bond’s yield to maturity is 7.40%, what will Bluestar Air’s bond sell for?
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