Question
Bond valuation 1) You are considering a 10-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. If you require
Bond valuation
1) You are considering a 10-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 10.31%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.
$ ________
Bond valuation
2) Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 13 years to maturity, and an 7.5% YTM. What is the bond's price? Round your answer to the nearest cent.
$ _________
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