Question
A 30-year, $1,000 par value bond has a semi-annual payment coupon of 7.5%. The bond currently sells for $910. The discount rate is 8.32%. What
A 30-year, $1,000 par value bond has a semi-annual payment coupon of 7.5%. The bond currently sells for $910. The discount rate is 8.32%.
What is the dollar value of the each semi-annual payment? $_________
How many payments (N) are there? __________
What is the Face or Future Value (FV)? $____________
What is the Fair Price (PV) of this bond? ____________
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
