What is the maximum price that you would pay up for a series of A-rated

corporate bonds each with a face value of $1000, that promise to pay 33 more semi-annual coupons of $20.00 each at a yield to maturity of 3.53%? Please show how you arrive at your result. (This is a test to see if you understand the inverse relationship between interest rates and bond prices.)

Answer rating: 100% (QA)

To determine the maximum price you would pay for the series of Arated corporate bonds you ca... View the full answer