Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Three years ago, Tristan bought a 30-year, 5.45%, $1,000
bond. The bond pays interest semiannually. He wants to
sell the bond after receiving the sixth semiannual dividend.
a) Similar bonds are being issued that pay 4%. What is
Tristan's bond worth today? (Round your answer to the
nearest cent.)
b) Similar bonds are being issued that pay 6%. What is
Tristan's bond worth today? (Round your answer to the
nearest cent.)
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Transcribed Image Text:Three years ago, Tristan bought a 30-year, 5.45%, $1,000 bond. The bond pays interest semiannually. He wants to sell the bond after receiving the sixth semiannual dividend. a) Similar bonds are being issued that pay 4%. What is Tristan's bond worth today? (Round your answer to the nearest cent.) b) Similar bonds are being issued that pay 6%. What is Tristan's bond worth today? (Round your answer to the nearest cent.)
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