Question
Suppose you require an annual interest rate of 8% from all your bond investments. You plan to purchase the following bond and hold on to
Suppose you require an annual interest rate of 8% from all your bond investments. You plan to purchase the following bond and hold on to it till maturity.
Coupon Rate: 8.9%
Maturity Date: 12/07/2042
Par value: $1,000
What should be the maximum price you pay for it now (i.e., 12/07/2020) so that you earn no less than the required 8% per year?
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Of Synthetic Finance Three Essays Of Speculative Materialism
Authors: Benjamin Lozano
1st Edition
1138790842, 978-1138790841
