A 30-year bond has 10% annual coupons, a par value of $1000, and a redemption value of $1000. Coupons are invested at a nominal annual rate of 6% convertible semi-annually. X is the highest price that an investor can pay for the bond and obtain an effective annual yield of at least 10%. Calculate X

Answer rating: 100% (QA)

To calculate the highest price X that an investor can pay for the bond and obtain an effective annua... View the full answer