Mia wants to invest in Government of Canada bonds that have a par value of $20,000...

 

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Mia wants to invest in Government of Canada bonds that have a par value of $20,000 and a coupon rate of 5.6 percent. The bonds have a 9-year maturity, and Mia requires an 8 percent return. How much should Mia pay for her bonds, assuming interest is paid annually? (Use the TI BA II Plus financial calculator, and round to the nearest dollar.) Mia wants to invest in Government of Canada bonds that have a par value of $20,000 and a coupon rate of 5.6 percent. The bonds have a 9-year maturity, and Mia requires an 8 percent return. How much should Mia pay for her bonds, assuming interest is paid annually? (Use the TI BA II Plus financial calculator, and round to the nearest dollar.)

Answer rating: 100% (QA)

To calculate the price Mia should pay for the bonds one can use the present value of a ... View the full answer