A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What was the purchase price of the bond, when the yield rate was 4.00% compounded semi-annually?
A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What was the purchase price of the bond, when the yield rate was 4.00% compounded semi-annually?
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 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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A $85,000 bond with a coupon rate of 7.50%, payable semi-annually, is redeemable in 11.5 years. What was the purchase price of the bond, when the yield rate was 4.00% compounded semi-annually?
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