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Bill Magness wants to purchase ERCOT bonds which are maturing in 23 years and yielding 4.17%. These ERCOT bonds have an annual coupon rate of
Bill Magness wants to purchase ERCOT bonds which are maturing in 23 years and yielding 4.17%. These ERCOT bonds have an annual coupon rate of 3.63% and a par value of $5,000. If the ERCOT bonds pay coupons twice per year, how much will Bill Magness have to spend to purchase one ERCOT bond? Note: the next coupon will be paid in exactly 6 months. Multiple Choice $4,465.03 $4,833.28 $4,234.87 $4,603.12 $4,741.21
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