Question
A . Bob has been offered a 20-year bond issued by a company at a price of $990. The bond has a coupon rate of
A. Bob has been offered a 20-year bond issued by a company at a price of $990. The bond has a coupon rate of 9% and pays the coupon semiannually. Similar bonds in the market will yield 7.7% today. What is the value of the bond? Do not round intermediate computations. Round your final answer to the nearest dollar.
B Bob has been offered a 20-year bond issued by a company at a price of $990. The bond has a coupon rate of 9% and pays the coupon semiannually. Similar bonds in the market will yield 7.7% today.
Should Bill buy the bonds at the offered price?
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