A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount. The bond is now priced at $925. What would the bond's price be in five years if the yield to maturity is the same as it is now? a. $ 966.79 b. $ 831.35 c. $1,090.00 d. $ 933.09 e. $ 925.00
A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount. The bond is now priced at $925. What would the bond's price be in five years if the yield to maturity is the same as it is now? a. $ 966.79 b. $ 831.35 c. $1,090.00 d. $ 933.09 e. $ 925.00
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 10PROB
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A 9 percent cumulative premium is paid on a 20-year bond of a $1,000 par amount.
The bond is now priced at $925. What would the
a. $ 966.79
b. $ 831.35
c. $1,090.00
d. $ 933.09
e. $ 925.00
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