Question
Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%.The bond has a face value of
Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%.The bond has a face value of $1,000, and it makes semiannual interest payments.If you require an 8.2% 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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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
