Question
Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40. If you
Assume that you wish to purchase a 20-year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40. If you require a YTM of 10 percent on this investment, what is the maximum price you would be willing to pay for the bond?
$761 $619 $828 $674
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
