Question
A bond promisee to pay 9.8% interest per annum. The next interest payment occurs in 287 days. The length of this and the previous years
A bond promisee to pay 9.8% interest per annum. The next interest payment occurs in 287 days.
The length of this and the previous years is 365 days.
The nominal value of the bond is 100%. the price is 85.65% today.
The bond will expire 10 years after the next interest payment.
The required rate of return is 6.7%.
What is the maximum price of this bond today that you would pay for?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
