A 15-year bond has a maturity value of $1,000 and pays $37.50 in interest every three months.

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A 15-year bond has a maturity value of $1,000 and pays $37.50 in interest every three months. If you require a 12 percent rate of return, computed quarterly,

How much would you be willing to pay for this bond?

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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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Posted Date: May 05, 2023 07:44 AM

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A 15-year bond has a maturity value of $1,000 and pays $37.50 in interest every three months.

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Expert Answer:

To calculate the present value of the bond we need to find the present value of the interest payment... View the full answer

Engineering Economic Analysis

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