Suppose you have the opportunity to invest in a bond which matures in three years has a face value of $1000 and a coupon rate of 2.75% per year. If the current interest rate is 3.27%, what is your maximum willingness to pay for this bond? Note: Keep your answer to 2 decimal places if needed and DO NOT Include the dollar sign. For example, if your answer is $123456 then enter 1234.56 in the answer box
Suppose you have the opportunity to invest in a bond which matures in three years has a face value of $1000 and a coupon rate of 2.75% per year. If the current interest rate is 3.27%, what is your maximum willingness to pay for this bond? Note: Keep your answer to 2 decimal places if needed and DO NOT Include the dollar sign. For example, if your answer is $123456 then enter 1234.56 in the answer box
Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter7: Bonds And Their Valuation
Section: Chapter Questions
Problem 16P
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