Question
Suppose you require an annual interest rate of 7% from all your bond investments. You plan to purchase the following bond and hold on to
Suppose you require an annual interest rate of 7% from all your bond investments. You plan to purchase the following bond and hold on to it till maturity. Coupon Rate: 5.1% Maturity Date: 10/15/2034 Par value: $1,000
What should be the maximum price you pay for it now (i.e., 10/15/2020) so that you earn no less than the required 7% per year?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
