Calculate the redemption a. 1089 b. 1431 C. 1203 d. 1192 - 1347

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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An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a
price of 1000. The annual effective yield rate is 8%, and the annual coupon rate is 6%.
Calculate the redemption value of the bond.
Oa.
1089
O b. 1431
Oc 1203
O d. 1192
O e. 1347
Transcribed Image Text:An investor purchased a 15-year bond with semiannual coupons, redeemable at par, for a price of 1000. The annual effective yield rate is 8%, and the annual coupon rate is 6%. Calculate the redemption value of the bond. Oa. 1089 O b. 1431 Oc 1203 O d. 1192 O e. 1347
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