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A bond with a face value of $2,000 pays half-yearly interest at a rate of 8% pa compounded half-yearly and has 12 years until maturity. The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 3% pa compounded half-yearly. Give your answer in dollars and cents to the nearest cent.   P = $

A bond with a face value of $2,000 pays half-yearly interest at a rate of 8% pa compounded half-yearly and has 12 years until maturity. The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 3% pa compounded half-yearly. Give your answer in dollars and cents to the nearest cent.   P = $

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 1P
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A bond with a face value of $2,000 pays half-yearly interest at a rate of 8% pa compounded half-yearly and has 12 years until maturity. The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 3% pa compounded half-yearly. Give your answer in dollars and cents to the nearest cent.

 

P = $ 

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