Question
You are considering investing in an 11% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices
You are considering investing in an 11% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices for discount, or zero-coupon, bonds with face values of $100:
| Maturity | Price |
| 1 | 91 |
| 2 | 84 |
| 3 | 79 |
What is the price of the bond today?
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
