Question
You are considering the purchase of a 20-year, noncallable bond with a coupon rate of 8.0%. 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 8.0%. 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?
| 699.07 | ||
| 774.30 | ||
| 701.22 | ||
| 677.79 | ||
| 758.34 |
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
