Dan is evaluating a bond issued by Spark Ltd that has a face value of $1,000 and
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Question:
Dan is evaluating a bond issued by Spark Ltd that has a face value of $1,000 and a coupon rate of 5% pa. The coupons are paid semi-annually. The bond has 10 years to maturity and 6.5% pa yield. If Dan has $9,000 to invest, calculate the price of the bond (show all calculations and show answer correct to two decimal places) and explain how many bonds he can buy.
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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