Question
Problem 13-07 Ten years ago your grandfather purchased for you a 25-year $1,000 bond with a coupon rate of 12 percent. You now wish to
Problem 13-07
Ten years ago your grandfather purchased for you a 25-year $1,000 bond with a coupon rate of 12 percent. You now wish to sell the bond and read that yields are 9 percent. What price should you receive for the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.
$
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Monetary Policy Strategy
Authors: Frederic S. Mishkin
1st Edition
0262513374, 978-0262513371
