You are considering investing in a 10-year zero coupon bond that compounds interest semiannually. If the...
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You are considering investing in a 10-year zero coupon bond that compounds interest semiannually. If the current market rate is 5.45 percent, what is the maximum price you should have to pay for this bond? Assume face value is $1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 52.75.) Maximum price to be paid $ 581.89 You are considering investing in a 10-year zero coupon bond that compounds interest semiannually. If the current market rate is 5.45 percent, what is the maximum price you should have to pay for this bond? Assume face value is $1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 52.75.) Maximum price to be paid $ 581.89
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Answer rating: 100% (QA)
Face value of the bond FV 1000 Annual interest rate r 545 or 00545 ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Posted Date:
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