Question
Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 8.0%. The bond has a face value
Assume that you are considering the purchase of a 15-year, noncallable bond with an annual coupon rate of 8.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 8.5% 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 For Decision Makers
Authors: Peter Atrill
9th Edition
1292311436, 978-1292311432
