Question
As an investor you decide to purchase the new issue of COSTCO's new Bond issue. The 7-year maturity semiannual-pay bond has a bullet cash flow
As an investor you decide to purchase the new issue of COSTCO's new Bond issue.
The 7-year maturity semiannual-pay bond has a bullet cash flow structure with a fixed rate coupon of 3.4% and will sell at an initial yield of 2.75%.
Based on this information, what is the value (price) of the bond assuming $100 of par value (closest to)?
| $100 | ||
| $94.6 | ||
| $104.1 | ||
| $93.4 | ||
| $103.8 | ||
| $ |
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Introductory Econometrics For Finance
Authors: Chris Brooks
3rd Edition
1107661455, 9781107661455
