Question
You'd like to buy a 20-year, noncallable bond with an annual coupon rate of 8.4% paid semi-annually. The bond has a par value of $1,000.
You'd like to buy a 20-year, noncallable bond with an annual coupon rate of 8.4% paid semi-annually. The bond has a par value of $1,000. If you require an 7.35% nominal yield to maturity on this investment, what should you be willing to pay for the bond?
| a. | $927.43 | |
| b. | $1044.66 | |
| c. | $1230.36 | |
| d. | $1014.57 | |
| e. | $1109.13 |
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
