Question
An investor would like to buy a quarterly compounding 14-year, $1,000 par value bond. The annual coupon rate on this bond is 8 percent. If
An investor would like to buy a quarterly compounding 14-year, $1,000 par value bond. The annual coupon rate on this bond is 8 percent. If the current yield to maturity of the bond is a 12 percent, what is a current price of the bond?
Please show work by showing the Cash Flow TimeLine and Inputs for a financial calculator or Excel.
b. $735
a. $730
c. $1,121
d. $1,335
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Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
1st Edition
0072452692, 9780072452693
