Question
You are considering the purchase of a 20-year, noncallable bond with a coupon rate of 9.0%. The bond has a face value of $1,000, and
You are considering the purchase of a 20-year, noncallable bond with a coupon rate of 9.0%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 12% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
| 1. | $699.07 | |
| 2. | $811.92 | |
| 3. | $891.95 | |
| 4. | $774.31 | |
| 5. | $916.50 |
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Principles Of Finance With Excel
Authors: Simon Benninga
1st Edition
0195301501, 978-0195301502
