Question: You are considering a 3 0 - year, $ 1 , 0 0 0 par value bond. Its coupon rate is 9 % , and
You are considering a year, $ par value bond. Its coupon rate is and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below.
If you require an "effective" annual interest rate not a nominal rate of how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.tableDABDBond valuation,,,Years to maturity,Par value of bond,$Coupon rate,Frequency interest paid per year,Effective annual rate,Calculation of periodic rate:,,,FormulasNominal annual rate,#
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