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
| 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 12.1% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? |
| a. | $692.84 |
| b. | $805.62 |
| c. | $636.44 |
| d. | $644.50 |
| e. | $668.67 |
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Basic Finance An Introduction To Financial Institutions, Investments And Management
Authors: Herbert B Mayo
9th Edition
0324322291, 9780324322293
