Question
You wish to purchase a 6-year bond that has a face value of $1000 and makes semi-annual interest payments of $40. If you require a
You wish to purchase a 6-year bond that has a face value of $1000 and makes semi-annual interest payments of $40. If you require a 10% yield to maturity on this investment, what is the maximum price you would pay for the bond?
a). $1,119.61
b). $988.19
c). $911.37
d). $1,046.80
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Financial Statement Analysis
Authors: Andrew P.C.
1st Edition
1520985002, 978-1520985008
