Question
Consider the following details for a bond issued by Bravo Incorporated. Issue Date 8/5/2000 Maturity Date 8/5/2030 Annual Coupon Rate (semi-annual coupons)9% Face Value $1,000
Consider the following details for a bond issued by Bravo Incorporated.
Issue Date 8/5/2000
Maturity Date 8/5/2030
Annual Coupon Rate (semi-annual coupons)9%
Face Value $1,000
Suppose that today’s date is 8/5/2004, what should the current trading price by for this bond if investors want a 12% annual return?
a. $762.08
b. $763.13
c. $906.85
d. $1,000.00
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
