An investor who owns a bond with a 9% coupon rate that pays interest semiannually and matures
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An investor who owns a bond with a 9% coupon rate that pays interest semiannually and matures in three years is considering its sale. If the required rate of return on the bond is 11%, the price of the bond per 100 of par value is closest to:
A. 95.00.
B. 95.11.
C. 105.15.
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The correct answer is B 9511 To calculate the price of the bond we can use the following formula PV ...View the full answer
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