Your good friend is looking to buy a bond that pays semi-annual interest. The par value is $1,000 and the coupon rate is 4%. Your friend plans to hold the bond to its maturity, which is 10 years from now. If her required rate of return is 3%, what is the most you recommend your friend pay for the bond? (round to nearest cent). Will use please show me how to do this using the PV function Is it a -PV. Thanks, C

Your good friend is looking to buy a bond that pays semi-annual interest. The par value is $1,000 and the coupon rate is 4%. Your friend plans to hold the bond to its maturity, which is 10 years from now. If her required rate of return is 3%, what is the most you recommend your friend pay for the bond? (round to nearest cent). Will use please show me how to do this using the PV function Is it a -PV. Thanks, C

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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