Question

20. Choose the best answer Suppose a bond has the following characteristics: residual value of 10,000,...

20. Choose the best answer

Suppose a bond has the following characteristics: residual value of 10,000, six years to maturity, oupon interest of 8% and pays interest semi-annually. Determine the value of the bond if the “yield” required by the investor is 10%.

Possible answers

$ 811.37

$ 911.37

$ 611.37

$ 711.37

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Answer #1

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