Question
What is the price of a bond given the following information? What is the net dollar amount you will pay for this bond on November
- What is the price of a bond given the following information?
- What is the net dollar amount you will pay for this bond on November 30, 2020?
Face Value: $1,000
Coupon: 6%, paid twice a year on June 30 and December 31.
Matures: December 31, 2024
Date Purchased: You purchased the bond in the secondary market on November 30, 2020. (Assume today is November 30, 2020; the day you purchase this bond)
Current market rate (rate used to discount the future cash flows to present value) is 4.0%.
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Business Analytics
Authors: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann
5th Edition
0357902211, 978-0357902219
