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Chapter 16, Problem 5FPP

Return on Bonds. Timothy has an opportunity to buy a $1,000 par value municipal bond with a coupon rate of 7% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 8%, what should he pay for the bond?

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Bill Mitselfik wants to buy a bond. It has a face value of $50,000, a bond rate of 6% (nominal), payable semi- annually, and matures in 10 years. Bill wants to earn a nominal interest of 8%. How much should Bill pay for the bond?
Jerry has an opportunity to buy a bond with a face value of $10,000 and a coupon rate of 14 ​percent, payable semiannually.   a. If the bond matures in five years and Jerry can currently buy one for ​$4000​, what is his IRR for this​ investment?
Jerry has an opportunity to buy a bond with a face value of $10,000 and a coupon rate of 13 ​percent, payable semiannually.   a. If the bond matures in five years and Jerry can currently buy one for ​$3,500​, what is his IRR for this​ investment?   b. If his MARR for this type of investment is 20 ​percent, should he buy the​ bond?
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What happens to my bond when interest rates rise?; Author: The Financial Pipeline;https://www.youtube.com/watch?v=6uaXlI4CLOs;License: Standard Youtube License