On January 1, 2023, an investor purchased a fixed income bond issued by the Central Bank...

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On January 1, 2023, an investor purchased a fixed income bond issued by the Central Bank of Costa Rica, whose face value is €30,000,000, which has a nominal rate of 5%. This title expires on December 31, 2026 and pays coupons semiannually. How much was the amount paid by the investor and the price of the security that he purchased, if the rate of return or discount (IRR) * that he will obtain will be 7%? Add the calculations On January 1, 2023, an investor purchased a fixed income bond issued by the Central Bank of Costa Rica, whose face value is €30,000,000, which has a nominal rate of 5%. This title expires on December 31, 2026 and pays coupons semiannually. How much was the amount paid by the investor and the price of the security that he purchased, if the rate of return or discount (IRR) * that he will obtain will be 7%? Add the calculations

Answer rating: 100% (QA)

SOLUTION To calculate the amount paid by the investor and the price of the security we need to consider the present value of the bonds future cash flows The cash flows consist of the semiannual coupon ... View the full answer