A bond with $40 coupons every 6 months is purchased at a discount to yield ją = 8%. If the absolute value of the write-up for the first year is $10, what is the purchase price of the bond? O A. $1250 B. S1500 C. $2500 D. $750

A bond with $40 coupons every 6 months is purchased at a discount to yield ją = 8%. If the absolute value of the write-up for the first year is $10, what is the purchase price of the bond? O A. $1250 B. S1500 C. $2500 D. $750

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 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...

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A bond with $40 coupons every 6 months is purchased at a discount to yield j2= 8%. If the absolute value of the write-up for the first
year is S10, what is the purchase price of the bond?
A. $1250
B. S1500
C. $2500
O D. S750
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