Question
Assume that you are considering the purchase of a 12-year bond with an annual coupon rate of 6.5%. The bond has face value of $1,000
Assume that you are considering the purchase of a 12-year bond with an annual coupon rate of 6.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 6.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
