Question
You are planning to purchase a 15-year bond with an annual coupon rate of 4%. The bond has face value of $1,000 and makes semiannual
You are planning to purchase a 15-year bond with an annual coupon rate of 4%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 5% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?
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Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo
5th Global Edition
1292304154, 978-1292304151
