You are considering buying a semi-annual coupon bond with a stated coupon rate of 9 % (note that the stated rate is in annual terms). There are 13 years to maturity remaining on it. Your required rate of return is 10.4 % per year, How much should you be willing to pay for this bond? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).

You are considering buying a semi-annual coupon bond with a stated coupon rate of 9 % (note that the stated rate is in annual terms). There are 13 years to maturity remaining on it. Your required rate of return is 10.4 % per year, How much should you be willing to pay for this bond? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 17P

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