Three years ago, Tristan bought a 30-year, 5.45%, $1,000 bond. The bond pays interest semiannually. He wants to sell the bond after receiving the sixth semiannual dividend. a) Similar bonds are being issued that pay 4%. What is Tristan's bond worth today? (Round your answer to the nearest cent.) b) Similar bonds are being issued that pay 6%. What is Tristan's bond worth today? (Round your answer to the nearest cent.)

Three years ago, Tristan bought a 30-year, 5.45%, $1,000 bond. The bond pays interest semiannually. He wants to sell the bond after receiving the sixth semiannual dividend. a) Similar bonds are being issued that pay 4%. What is Tristan's bond worth today? (Round your answer to the nearest cent.) b) Similar bonds are being issued that pay 6%. What is Tristan's bond worth today? (Round your answer to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 3P

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