You are considering buying a bond that pay 20 semi-annual coupons of S 50 over the remaining maturity period. If the bond has the par value of $ 1,000 and you require 11% yield, what would be the price you would wan to pay for the bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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You are considering buying a bond that pay 20 semi-annual coupons of $
50 over the remaining maturity period. If the bond has the par value of $
1,000 and you require 11% yield, what would be the price you would want
to pay for the bond?
Transcribed Image Text:You are considering buying a bond that pay 20 semi-annual coupons of $ 50 over the remaining maturity period. If the bond has the par value of $ 1,000 and you require 11% yield, what would be the price you would want to pay for the bond?
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