Question: Your client has been offered a 10-year, $1,000 par value bond with a 12 percent coupon. Interest on this bond is paid quarterly. If your

Your client has been offered a 10-year, $1,000 par value bond

Your client has been offered a 10-year, $1,000 par value bond with a 12 percent coupon. Interest on this bond is paid quarterly. If your client is to earn a nominal rate of return of 10 percent compounded quarterly, how much should she pay for the bond at the end of the second year? (Answer is rounded) Your answer: 01109 898 1273 769 1796 Clear

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