Nellie is evaluating a potential bond purchase that the seller purchased 12 years ago for $4,000 The bond matures 8 years from today It has a face value of $10,000, pays quarterly coupons with a coupon rate of 1 To make a yield to maturity of 10 EAR, what is the most Nellie should pay for the bond ...

All the mounts are in Face value 10000 Coupon payment 10000 1 4 80 YTM quarterly 10 4 25 ...

Nellie is evaluating a potential bond purchase that the seller purchased 12 years ago for $4,000. The

Question:

Nellie is evaluating a potential bond purchase that the seller purchased 12 years ago for $4,000. The bond matures 8 years from today. It has a of $10,000, pays quarterly coupons with a rate of 1%. To make a yield to of 10% EAR, what is the most Nellie should pay for the bond.
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...