Question
Jeremy kohn may invest in a 10 year bond that pays a 12% coupon semiannually. The current market rate for simliar bonds is 8% jeremy
Jeremy kohn may invest in a 10 year bond that pays a 12% coupon semiannually. The current market rate for simliar bonds is 8% jeremy can buy this bond from his uncle for $1,300. Should Jeremy buy the bond from his uncle?
yes, because he would be paying $31.60 less than the market price of the bond
no, because he would be paying $31.60 more than the market price of the bond
no, because he would be paying $28.19 more than the market price of the bond
yes, because he would be paying $28.19 more than the market price of the bond
no, because he would be paying $395.35 less than the market price of the bond
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Money And Capital Markets
Authors: Peter Rose, Milton Marquis
10th Edition
0077235800, 9780077235802
