Question
You are considering a 25-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in
You are considering a 25-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
Open spreadsheet
If you require an "effective" annual interest rate (not a nominal rate) of 8.15%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.
ps: answer is not 2468.73, and please if you don't know what you're doing; please keep scrolling, because y'all wasting people time and questions, and don't even try to come back and fix y'all mistakes. Thank You in advance!
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