Question
Assume that you are considering the purchase of a 7-year bond with an annual coupon rate of 4.5%. The bond has face value of $1,000
Assume that you are considering the purchase of a 7-year bond with an annual coupon rate of 4.5%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 12.0% 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 For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
