Question
Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 7.5% per year, payable at 3.75% semiannually.
Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 7.5% per year, payable at 3.75% semiannually. The bond has a remaining life of 5 years. If Lucy wants to earn at least 8.5% per year compounded semiannually, what is the maximum price she would be willing to pay to purchase the bond?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
